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Warren Asks SEC to Investigate Trading by Fed Officials

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What You Need to Know

  • Two regional Fed chiefs recently announced their departures following revelations about their trading activity last year.

Senator Elizabeth Warren called on the Securities and Exchange Commission to investigate whether stock transactions by top Federal Reserve officials violated insider trading rules.

“The reports of this financial activity by Fed officials raise serious questions about possible conflicts of interest and reveal a disregard for the public trust,” Warren wrote in a letter to SEC Chairman Gary Gensler.

“They also reflect atrocious judgement by these officials, and an attitude that personal profiteering is more important than the American people’s confidence in the Fed,” she explained.

Warren cited a Bloomberg News report on Friday that Fed Vice Chair Richard Clarida’s financial disclosures show he traded between $1 million and $5 million out of a bond fund into stock funds one day before Chair Jerome Powell issued a statement flagging possible policy action as the pandemic worsened.

Two regional Fed chiefs recently announced their departures following revelations about their trading activity last year.

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