Washington Top US central bankers will no longer be allowed to buy shares in individual companies. The Federal Reserve on Thursday enacted new rules for the financial market operations of its senior members. Accordingly, bonds from individual companies are also taboo. For transactions that are still permitted, the Fed members must obtain prior approval and generally hold their investments for at least one year.
“These tough new rules raise the bar,” said Fed Chairman Jerome Powell. The mere appearance of a conflict of interest should be avoided when it comes to the timing of investment decisions.
About six weeks ago reports on the financial market activities of senior Fed members caused outrage. Two of the twelve presidents of regional Fed branches resigned in this context. It was about their investments in 2020, when the Fed tried to mitigate the effects of the corona pandemic with massive economic aid.
Top jobs of the day
Find the best jobs now and
be notified by email.