The U.S. Federal Reserve (Fed) announced new investment rules on Thursday in response to a controversy surrounding some central bank policymakers recently.
The new rules will limit the types of financial securities that can be held by top central bank officials, including a ban on buying shares or holding individual shares.
This also requires prior notice (45 days in advance) and agreement to conduct any transactions and set the investment to be made for at least one year.
Chairman Jerome Powell in a statement on Thursday, said the new rules would raise high standards to reassure the public that all Fed officials are focusing on the central bank’s public mission.
The new rules were made in the wake of a recent controversy involving two of the 12 central bank presidents representing U.S. territories, namely Boston Fed President Eric Rosengren and Dallas Fed President Robert Kaplan.
The two individuals have resigned from the post following revelations showing they were involved in individual securities trading in 2020.
