A ban on investments by senior officials from the Fed

In the statement made by the Fed, it was stated that a series of rules regarding the investment activities of policymakers had been adopted.

In the statement, it was emphasized that the rules in question aim to support the public's confidence in the impartiality and integrity of the work of the Federal Open Market Committee (FOMC).

In the statement, which stated that senior Fed officials were prohibited from purchasing individual stocks or funds within the scope of these rules, it was noted that the authorities also prohibited bonds, cryptocurrencies, commodities, or foreign exchange investments.

In the statement, it was stated that the authorities were prohibited from entering into derivative contracts, selling short, and buying securities on margin.

They will need to get approval for any action

In the statement, it was stated that it was also necessary to notify Fed officials 45 days in advance of the purchase and sale of securities, and it was stated that approval should be obtained before such transactions and investments should be made for at least one year.

In the statement, it was noted that buying and selling will be prohibited during periods of increased market stress.

The rules apply to members of the board of directors and regional Fed presidents, as well as vice presidents, research directors, FOMC staff, System Open Market Account managers and assistants, board department managers who regularly attend Committee meetings, and individuals designated by the President, along with their spouses and children.

In the statement, it was stated that the aforementioned rules will enter into force on May 1, and only the rules regarding preliminary notification and pre-approval of transactions will be valid as of July 1.

The investments of some Fed officials were on the agenda

The Fed's rules for investments by senior officials came after it was revealed that some officials acquired financial assets at a time when the Fed was actively supporting markets to counter the economic effects of the COVID-19 pandemic.

In the news in the US press last year, it was reported that names like Fed Chairman Jerome Powell, Boston Fed President Eric Rosengren, Richmond Fed President Thomas Barkin, and Dallas Branch President Robert Kaplan owned some assets that the bank bought in 2020.

Kaplan and Rosengren announced that they would retire after hearing the news about their investment.

Fed Chairman Powell, on the other hand, ordered a review of the ethical rules for the financial assets and transactions of senior Fed officials after the personal portfolios of bank officials became public.

In October last year, the bank announced that it would restrict investment activities by banning individual stock purchases of monetary policymakers and senior staff.