Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Fed to Ban Senior Officials From Owning Stocks, Restrict Investment Activity

Published 10/21/2021, 02:05 PM
Updated 10/21/2021, 02:24 PM
© Reuters.

By Yasin Ebrahim - The Federal Reserve announced new rules Thursday that will seek to ban senior Fed policymakers from investing in stocks. 

The new rules, which will be incorporated over the coming months, aim to curb the investment activity undertaken by senior Fed officials including a ban on stock and bond buying. It also requires officials to provide advance notice of 45 days before purchasing or selling any securities and requires that investments be held for at least a year. 

“These tough new rules raise the bar high in order to assure the public we serve that all of our senior officials maintain a single-minded focus on the public mission of the Federal Reserve,” Fed Chair Jerome Powell said in a statement.

The central bank's move to quell investment activity by its senior members comes after controversy over reports that multiple Fed officials had been buying and selling stocks just as the central bank rolled out its market-friendly policy to cushion the economic blow from the pandemic. 

The ethics uproar that followed the reports of trading activity by senior officials led to regional presidents Robert Kaplan of Dallas and Eric Rosengren of Boston both resigning earlier this year.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.