Fed Imposes Sweeping New Limits On Policymakers’ Investments

Federal Reserve Minutes
FILE - In this Sept. 30, 2021 file photo, Federal Reserve Chairman Jerome Powell testifies during a House Financial Services Committee hearing on Capitol Hill in Washington. Federal Reserve officials agreed at their last meeting that if the economy continued to improve, they could start reducing their monthly bond purchases as soon as next month and bring them to an end by the middle of 2022. The discussion was revealed in the minutes of the Fed’s Sept. 21-22 meeting, released Wednesday., Oct. 13. (Al Drago/Pool via AP)


WASHINGTON (AP) — The Federal Reserve is imposing a sweeping new set of restrictions on the investments its officials can own, a response to questionable recent trades that forced two top Fed officials to resign.

The Fed announced Thursday that policymakers and senior staff would be barred from investing in individual stocks and bonds. They would also have to provide 45 days’ advance notice of any trade and receive prior approval from ethics officials. And they would have to hold the investments for at least a year.

As a result, Fed officials would essentially be restricted to holding mutual funds.

Last month, two presidents of regional Fed banks, Robert Kaplan and Eric Rosengren, announced their resignations after it was revealed that they had traded stocks and funds in 2020 at the same time that the Fed was taking expansive steps to calm markets during the pandemic recession.




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