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Inspector General probing whether Fed official trades broke ethics rules or the law

Mount Equity Group Tokyo, Japan > News > Markets > Inspector General probing whether Fed official trades broke ethics rules or the law

The Federal Reserve said it is working with the Office of Inspector General in its review of 2020 trades by a handful of central bank officials to determine if those transactions met ethics standards and did not break the law.

The addition of the Inspector General’s office adds weight to a growing controversy at the Fed after a series of financial disclosures showed that Vice Chair Richard Clarida, Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren all made significant financial transactions in 2020.

Those trades, some of which totaled millions of dollars, drew ire from Capitol Hill and concern that central bank officials could have traded based on nonpublic information as the Fed embarked on emergency measures to help save the U.S. economy from the Covid-19 recession.

Federal Reserve Chairman Jerome Powell attends the House Financial Services Committee hearing on Capitol Hill in Washington, U.S., September 30,…

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