After it was revealed that Dallas Fed Bank President Robert Kaplan and Boston Fed Bank President Eric Rosengren executed multi-million-dollar stock purchases, the U.S. central bank will now order sweeping ethics reviews.
Federal Reserve Chair Jerome Powell initiated an assessment of ethics rules governing financial holdings and dealings by senior members of the Eccles Building.
Powell reportedly started the review last week, soon after it was revealed that Kaplan and Rosengren hit the buy button on stocks.
“Because the trust of the American people is essential for the Federal Reserve to effectively carry out our important mission, Chair Powell late last week directed Board staff to take a fresh and comprehensive look at the ethics rules around permissible financial holdings and activities by senior Fed officials,” a central bank spokesperson said in a statement.
“This review will assist in identifying ways to further tighten those rules and standards. The Board will make changes, as appropriate, and any changes will be added to the Reserve Bank Code of Conduct.”
Is this shocking? The Fed prints money, the newly created cash flows to Wall Street, and the very people that turned on the printing press profit?
Shock!
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