Jerome Powell to Review Federal Reserve Rules on Security Concerns

Odd trades have sparked concerns about the security of Federal Reserve practices.

Odd trades have sparked concerns about the security of Federal Reserve practices.

Following reports that regional presidents of the Federal Reserve have been making concerning trades, purchases, and investments, Chairman Jerome Powell has ordered a full review of the Fed’s policies. A potential goal of this review is to determine whether new changes or restrictions on Fed presidents will be required.

“Because the trust of the American people is essential for the Federal Reserve to effectively carry out our important mission, Chair Powell late last week directed Board staff to take a fresh and comprehensive look at the ethics rules around permissible financial holdings and activities by senior Fed officials,” a Fed spokesperson said in a statement. “This review will assist in identifying ways to further tighten those rules and standards. The Board will make changes, as appropriate, and any changes will be added to the Reserve Bank Code of Conduct.”

“The core rules that guide personal financial practices for Federal Reserve officials are the same as those for other government agencies,” the Fed spokesperson added. “We also have a set of supplemental rules that are stricter than those that apply to Congress and other agencies that are specific to the work we do at the Federal Reserve.”

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