Warren Demands Probe into Federal Reserve

Issue 91

Elizabeth Warren called on Monday for an investigation into whether top Federal Reserve officials engaged in insider trading in 2020, when some bought and sold securities that could have benefited from monetary policy moves.

The Senator who sits on the committee that oversees the Fed, sent a letter to the SEC chair, Gary Gensler, asking him to look into transactions that three central bank officials carried out last year.

Richard H. Clarida, the Fed’s vice-chair, and two of the central bank’s 12 regional presidents — Robert S. Kaplan from the Federal Reserve Bank of Dallas and Eric S. Rosengren from the Federal Reserve Bank of Boston — engaged in trades that have come under scrutiny.

Warren asked of Gensler to “determine if any of these ethically questionable transactions may have violated insider trading rules,” adding that the trading reflected “atrocious judgment by these officials, and an attitude that personal profiteering is more important than the American people’s confidence in the Fed.”

Source: New York Times