On Friday, two senior Fed staff members reported a series of financial transactions in early 2020, when the bank was working on emergency measures to support the economy during the COVID-19 outbreak.
The two senior staffers are economists John Stevens and Diana Hancock, both senior associate directors of the Fed's Research and Statistics Division, and report a series of transactions in February and March 2020 on the official financial disclosure form.
Fed Chairman Jerome Powell signaled a shift in monetary policy at the end of February 2020 and announced an emergency rate cut in early March.
John Stevens reported 46 financial transactions on February 27 and February 28, 2020, buying and selling individual corporate stocks, mutual funds and other investments. And he reported 566 deals throughout 2020, making it the most active fed senior board worker.
Diana Hancock disclosed information including the sale of more than $1 million of an exchange-traded fund on Feb. 27. Purchased $500001 to $1 million in shares of the same fund on March 18, 2020. However, Hancock said the transactions were manipulated by her spouse and that she herself had no control over them.
Last year, Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren were exposed to trading actively during the pandemic, and the Fed has been closely watched since then. Both subsequently resigned from their posts.
In January, Fed Vice Chairman Richard Clarida also announced his early resignation. Clarida sold an equity fund on February 24, 2020, and bought the same equity fund on February 27.
Powell has issued orders calling for a full review of the holding and trading of shares by senior Fed officials. The Fed also issued new rules prohibiting the trading of individual stocks and bonds for "their own people".
Today's U.S. ban on officials trading in stocks could be further extended to members of Congress. With House Speaker Pelosi's change of attitude this week and Senate Majority Leader Schumer expressing support for the ban, the bill to ban U.S. lawmakers and relatives from trading stocks could make substantial progress.