© Reuters.File picture: On July 15, 202, Federal Reserve Chairman Jerome Powell (Jerome Powell), the Senate Banking, Housing, and Urban Affairs Committee hearing on the “Semi-Annual Monetary Policy Report to Congress” on Capitol Hill in Washington, U.S. Take a seat at the meeting to testify
(Reuters)-US Federal Reserve Board Chairman Jerome Powell said on Wednesday that he was dissatisfied with the active investment made by the two Federal Reserve regional bank governors and promised to tighten the central bank’s ethical rules after a thorough review.
“We need to make changes, and we will do this,” Powell said at a television news conference after the Fed’s latest policy meeting.
Although the rules restricting the trading activities of Fed policy makers are stricter than those for general government employees, the current framework “is clearly not enough for the task of truly maintaining public trust.”
When asked if he still trusts Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren to complete their work, Powell said: “In terms of things like confidence, I think, No one is happy. No one is happy (Federal Open Market Committee) to raise these questions.”
When he made the above remarks, the two officials were criticized and the public called on them to resign because they were actively trading in stocks and other investment fields last year, when millions of Americans were unemployed, and the Fed was taking historic steps to boost finance. Market and economy.
Both Kaplan and Rosengren stated that their ethics officials had signed their deal, but have since promised to divest their shares before the end of this month to avoid conflicts of interest.
After Powell’s speech on Wednesday, their spokesperson declined to comment.
Powell said that he was not aware of their trading activities until the Wall Street Journal and other media reported earlier this month.
Powell was also asked about his own holdings, including municipal securities purchased by the Federal Reserve last year as part of an effort to avoid a financial market collapse. Powell said that he has owned them for many years and is not an active trader.
“Munis has always been considered a very safe place for Fed personnel to invest, because it is well known that the Fed will never buy municipal securities,” he said.
But then the crisis hit, and the Fed began to support a large number of financial markets. Powell said that he checked with the Government Ethics Office and found that he had no conflicts.
Powell stated that he was “unwilling to be at the forefront of this process” and said what changes might happen in the future.
“When we have something to announce, we will continue to do so,” he said.
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