WASHINGTON (Reuters) – The U.S. Federal Reserve on Thursday banned individual stock purchases by senior central bank officials and unveiled a wide range of other restrictions on their investing activities about six weeks after reports of state of active business activities by some senior politicians have sparked an ethical outcry. .
The new rules will limit the types of financial securities senior Fed officials can hold, including an outright ban on buying individual stocks or holding individual bonds. It also requires advance notice and approval of any transaction, and stipulates that investments must be held for at least one year.
“These tough new rules set the bar very high to assure the public we serve that all of our senior officials remain focused on the Federal Reserve’s public mission,” Federal Reserve Board Chairman Jerome Powell said. in a press release.
In a press release, the Fed said the new rules were intended to “help guard against even the appearance of any conflict of interest in the timing of investment decisions.”
The new rules come after the resignation of two of the 12 regional chairmen of Federal Reserve banks after reports of their active trading in 2020, when the Fed launched a massive effort to combat the economic impacts of the COVID pandemic -19.
(Reporting by Howard Schneider; Editing by Dan Burns)
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