You’ll Be Shocked the Learn There’s Corruption at the Fed
Fed Chaiman Jerome Powell has decided the Fed ought to “review” its ethics policies after it was revealed that high-ranking personnel at the Fed were actively trading stocks even as the Fed was busy pulling the levers on monetary policy.
CNBC reported today:
Federal Reserve Chairman Jerome Powell directed staff to review the central bank’s ethics rules for appropriate financial activities after disclosures that several senior central bank officials made multiple multimillion-dollar stock trades in 2020, while others held significant investments. …
Last week, financial disclosures filed by the Fed’s 12 regional presidents revealed some had actively traded in 2020, while others held million-dollar financial positions without making changes to their portfolios.
Specifically, Dallas Fed President Robert Kaplan made numerous trades worth $1 million or more last year. Meanwhile, Boston Fed President Eric Rosengren last year was making large trades in real estate investment trusts, possibly in the six-figures range.
The problem here is obvious to any normal person who watches the Fed.
The Fed is not just an instrument of monetary policy, but a regulator of financial institutions. The Fed regulates bank holding companies, foreign banks working in the US, hundreds of state members banks, and other institutions as well. This gives Fed policymakers an enormous amount of control over the fortunes of many financial institutions.
Moreover, Fed policy can be—and these days, usually is—instrumental in pushing up stock prices and real estate pri
Article from Mises Wire