Sherrod Brown proposes banning Federal Reserve officials from stock ownership

Now that a couple of Federal Reserve officials are out, Washington is scrutinizing the institutions’ officials to trade stocks.

Sen. Sherrod Brown (D-OH) has proposed legislation that would prohibit U.S. central banks from stock trading during their tenure at the Eccles Building.

From Reuters:

The head of the U.S. Senate Banking Committee on Tuesday said he plans to introduce legislation that would ban ownership of individual stocks by Federal Reserve officials in the aftermath of revelations that two reserve bank presidents had been active investors.

Democratic Senator Sherrod Brown of Ohio told Fed Chair Jerome Powell of his intent to introduce the legislation at the start of a hearing Brown’s committee was holding to review actions by the Fed and U.S. Treasury to shield the economy during the coronavirus pandemic.

Will other central banks follow suit?