The Federal Reserve said that its internal watchdog plans to open an investigation into trading activity by senior U.S. central bank officials, following revelations about transactions in 2020.
“As part of our comprehensive review, we began discussions last week with the Office of Inspector General for the Federal Reserve Board to initiate an independent review of whether trading activity by certain senior officials was in compliance with both the relevant ethics rules and the law,” the Fed said in a statement Monday. “We welcome this review and will accept and take appropriate actions based on its findings.
“It is important that the public have a very high level of confidence that no senior Fed official is engaged in creating any kind of conflict of interest,” Toomey said. The Fed’s information security guideline has specific rules around trading, noting that “an employee with knowledge” of confidential policy information “should avoid engaging in any financial transaction the timing of which could create the appearance of acting on inside information concerning Federal Reserve deliberations and actions.”
Told of the OIG planning to open an investigation, Warren, said, “Good, they should. The SEC should also open an investigation. This is serious.”‘Pre-planned rebalancing’