Democratic Senators Press Fed to Add Teeth to New Central Bank Ethics Rules
July 13, 2022
A group of Democratic senators is pushing the Federal Reserve to strengthen new central bank ethics rules and add consequences for those who break them.
The senators, in a letter to Fed leader Jerome Powell, said rules banning central bankers from holding certain securities and limiting how they can trade don’t go far enough.
The new trading rules were implemented in May.
The Fed needs to create “a discernible structure for addressing violations” as well as improve transparency of the financial disclosure process, the senators wrote to Mr. Powell.
The senators signing the letter were Sherrod Brown (D., Ohio), chairman of the Senate Banking Committee; Raphael Warnock (D., Ga.); Jeff Merkley (D., Ore.); Kirsten Gillibrand (D., N.Y.); and Jon Ossoff (D., Ga.).
A Federal Reserve spokesperson declined to comment on the letter.