Federal Reserve Chairman Jerome Powell testifies during a hearing of the United States House Oversight and Reform Subcommittee on the coronavirus crisis at Capitol Hill in Washington, United States on 22 June 2021. Graeme Jennings / Pool via REUTERS

September 16 (Reuters) – Federal Reserve Chairman Jerome Powell has ordered a thorough review of the ethics rules governing assets and financial transactions by senior U.S. central bank officials, a spokesperson said on Thursday from the Fed.

Powell ordered the review late last week, the spokesperson said, a development that follows recent reports that two of the 12 regional reserve bank chairmen in the Fed’s system had been investors. active. The revelations, originally reported by The Wall Street Journal, prompted senior U.S. lawmakers – including Senator Elizabeth Warren of Massachusetts – to demand tighter restrictions on such activity. Read more

“Because the confidence of the American people is essential for the Federal Reserve to effectively carry out our important mission, President Powell asked board staff late last week to take a fresh and comprehensive look on the rules of ethics concerning the participations and the financial activities authorized by the senior executives of the Fed. officials, ”the spokesperson said.

The rules that guide the personal financial practices of Fed officials are the same as those of other government agencies, the spokesperson said. In addition, the Fed has additional rules that are stricter than those of Congress and other agencies that are specific to the work carried out by the Fed.

“This review will help identify ways to further strengthen these rules and standards. The board will make changes, if necessary, and any changes will be added to the reserve bank’s code of conduct,” the spokesperson said. word.

Reporting by Howard Schneider; Writing by Dan Burns; Editing by Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles.

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