FOMC Bans Fed Reserve Employees From Dealing in Crypto, Stocks
https://ift.tt/Jza7OQx
- Sen. Elizabeth Warren called for an investigation of the central bank in October.
- There will be a six-month grace period for newly covered officials.
According to a statement, senior Federal Reserve employees would no longer possess cryptocurrencies or other assets like stocks. The new limits for “investment and trading activity of senior officials” were announced by the Federal Open Market Committee (FOMC) in a statement on Friday.
The FOMC has said that senior Federal Reserve officials may no longer purchase crypto, individual stocks or sector funds or maintain investments in individual bonds, agency securities, commodities, or foreign currencies. They are also prohibited from engaging in derivatives contracts, short sells, or leverage trading.
Conflict of Interest
FOMC mentioned:
“The rules, which were first announced in October 2021, aim to support public confidence in the impartiality and integrity of the Committee’s work by guarding against even the appearance of any conflict of interest.”
There were many million-dollar-plus stock transactions made by Federal Reserve Bank of Dallas President Robert Kaplan while attempting to implement steps to strengthen the economy. Because of obvious “conflicts of interest,” Sen. Elizabeth Warren (D-Mass.) called for an investigation of the central bank in October.
There will be a six-month grace period for newly covered officials and a 12-month grace period for those already covered by the new laws. Members of the Federal Reserve Board, Reserve Bank presidents, Reserve Bank first vice presidents, Reserve Bank research directors, FOMC staff officers, the manager and deputy manager of the System Open Market Account, Board division directors who regularly attend Committee meetings, any other individual designated by the Chair, and the spouses and minor children of these individuals will all be subject to the new regulations.
Cryptocurrency
