The Federal Reserve’s internal watchdog recommended that personal trading rules be extended to more staff after discovering that hundreds with access to confidential information are not covered.
Chair Jerome Powell agreed with the recommendations in a letter accompanying the report, which was released Monday.
The Fed in 2021 beefed up its rules governing the investment and trading of senior officials in the aftermath of an ethics scandal following unusual trading activity by two regional Fed presidents.
But many Fed employees, including dozens who attend policy-setting Federal Open Market Committee meetings, don’t fall under the restrictions because they are not considered senior officials. The watchdog said these attendees should be subject to stiffer rules as well.
Source: Fed Watchdog Recommends More Staff Be Covered by Trading Rules – Bloomberg
