In February 2022, the Federal Reserve approved a ban on top officials trading stocks and bonds, as well as cryptocurrencies, following scrutiny over whether several people, including Chairman Jerome Powell, could have access to nonpublic financial information. Now, the agency's inspector general has issued recommendations for changes to the central bank for it to crack down on possible conflicts of interest involving employee trading, according to a 32-page report released on Monday.
The incidents drew scrutiny from Congress and placed Powell's reappointment under the spotlight, leading to the chairman enacting trading restrictions, including a requirement for bank presidents, senior staff, and board governors to receive approval and have to schedule mutual fund buys or sales.