Federal Reserve under pressure after central banker trader affair

Posted on Sep 17, 2021 4:35 PMUpdated Sep 17, 2021, 4:54 PM

Is trading compatible with the exercise of the highest positions in finance and administration? The American central bank, which holds in advance information, decisions and statistics likely to cause fluctuations in the markets (stocks, bonds, currencies, etc.) places its members in a permanent position of insider. This is the reason why, like all central banks, it limits and supervises the management of their personal finances by its members, whether they belong to the “board” of the Washington Fed or they are at the head of. one of the 12 regional Fed that covers the territory.

But its rules appeared too loose after revelations of the speculative pranks of 2 of its 12 regional directors, Robert Kaplan (Dallas Fed) and Eric Rosengren (Boston Fed). The first announced that it would sell all its shares (Apple, Amazon, Alphabet…) by the end of the month. He will reinvest this money in index funds (which passively follow a stock market index like the Standard and Poor’s 500 index) and will refrain from any trading operation while he is in his position.

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