"Forget about individual jobs," said Benjamin Dulchin, director of the Fed Up campaign at the Center for Popular Democracy, a group that advocates for the Fed to focus more on the needs of American workers. "The problem is that a president of a Fed bank - one of the few people who ... defines our country's monetary policy - has his personal interests so clearly aligned with the success of our countries. larger companies. "
On Thursday, Kaplan and Rosengren said in separate statements that their traOur actions complied with the ethical rules of the Fed. They also said they would change their investment practices to address "even the appearance of any conflict of interest" and sell all individual holdings by September 30, transferring the produced in cash or passively invested index funds. Kaplan and Rosengren both said they will not trade on these accounts while they are chairman of the Fed. ts.
The changes came after they were both criticized for trades made last year which were reported for the first time by the Wall Street Journal this week. Each has since made their annual financial statements public.
The documents showed that Kaplan, for example, boughtand sold at least $ 18 million worth of individual stocks in 2020, mostly tech stocks like Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O) and energy values such as Marathon Petroleum Corp (MPC .N) . All of these transactions have been reviewed by the Dallas Fed 's general counsel, Dallas Fed spokesman James Hoard said.
Rosengren, who has publicly expressed concerns about a potential overvaluation. risks in the commercial real estate sector, held stakes in four real estate investment companies and carried out other investment transactions, such asline a Bloomberg Report .
"Unfortunately, the emergence of such authorized personal investment decisions raised questions, so I made the decision to give in these assets to underscore my commitment to the Fed's ethical guidelines, "Rosengren said in a statement Thursday.
CALLS FOR GREATER MONITORING
Fed officials are subject to specific restrictions, such as not trading during the "blackout period" around every Fed meeting. ng when policy sensitive information is distributed, do not hold stocks in b of banks or mutual funds concentrated in the financial sector and not reselling securities within 30 days of purchase.
But the code of conduct also has a broader language.
" An employee must avoid any situation which could give rise to a conflict of real interest or even the appearance of a conflict of interest, "the code specifies. Those with access to information on market movements" should avoid engaging in any transaction financial institution whose timing could appear to act on inside information concerning the deliberations and actions of the Federal Reserve. "
Financial information did not look much different from previous years. But 2020 was a signing year for the Fed in which, on its own behalf, it crossed the "red lines" to ensure the continued functioning of financial markets. In a swift response to the then unfolding pandemic, Fed policymakers in March 2020 reiteratedreduced interest rates to near zero and rolled out programs to keep the Treasury bond, mortgage-backed securities and corporate bond markets functioning.
The Fed 's swift action has been hailed for helping avert a further collapse in financial markets, an achievement according to Fed officials that has helped minimize the blow to the economy. But some have criticized the Fed's measures for helping to raise asset prices while not doing enough to support small businesses and main street households.
Some Fed- watchers say maybe it's time to review the rules.
" This is a further proof that the oversight of regional Federal Reserve bank chairmen is broken, "said AaronKlein, Principal Investigator at the Brookings Institution. "I don't know if this is a rule breach or a rule breach.
United States Senator Elizabeth Warren, long one of Washington 's most vocal critics of the central bank's approach to financial regulation, said officials of the Fed should not be allowed to negotiate.
"I have said it before and will say it again: members of Congress and senior government officials should not be allowed to trade or own stock, "Warren wrote on Twitter Friday. " Period. " Reporting by Jonnelle Marte in New York, Howard Schneider in Washington and Ann Saphir in Berkeley, California Editing by Dan Burns and Matthew Lewis
Nos standards: Thomson Trust Principles Hfrance.fr.