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.