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Powell vows to tighten Fed ethics rules after stock trading uproar

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Federal Reserve Chair Jerome Powell on Wednesday pledged that the central bank will strengthen its ethics rules after an outcry surrounding financial trades during the pandemic by two top policymakers.

The trades by Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren have sparked calls by some progressive groups for their resignation and a push by Sen. Elizabeth Warren (D-Mass.) to ban all trading on individual stocks by Fed officials.

Financial disclosures showed that the two Fed presidents had bought and sold stocks and real-estate-linked assets in 2020 as the central bank was engaged in an extensive rescue of financial markets.

Powell, speaking at a press conference after a Fed policy meeting, said he wasn’t previously aware of the trades. But he said it’s clear changes are necessary.

The existing ethics framework “served us well, but it is now clearly seen as not adequate to the task of really sustaining the public’s trust in us,” Powell said in........

© Politico

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