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Fed adopts strict trading rules after ethics scandal

Fed adopts strict trading rules after ethics scandal

The goal is to “ensure public confidence in the impartiality and integrity of the Committee’s work,” the Fed said in a statement. The Fed’s Federal Open Market Committee is its monetary policy-setting body.

Fed officials will be prohibited from buying sector funds, conducting short sales or buying securities on account, as well as holding cryptocurrencies, commodities or foreign exchange.

The restrictions come on top of rules first outlined last October that bar Federal Reserve officials from buying individual stocks or participating in derivatives, or owning individual bonds and agency-backed securities.

The rules require policy makers and covered staff to give 45 days notice and approval for any transaction, and prohibit any trading during periods of market stress and a slightly longer period around regular monetary policy meetings.

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