Fed says watchdog to review policymakers’ trading activity for lapses

(Reuters) – The U.S. Federal Reserve said on Monday it has begun talks with its internal watchdog to review for possible ethical or legal lapses the financial-market trading by certain top central bankers, after the disclosure of transactions during 2020 by Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren prompted a public outcry.

“As part of our comprehensive review, we began discussions last week with the Office of Inspector General for the Federal Reserve Board to initiate an independent review of whether trading activity by certain senior officials was in compliance with both the relevant ethics rules and the law,” a Fed spokesperson said in a statement. “We welcome this review and will accept and take appropriate actions based on its findings.”

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