Democratic senators advocate enhanced Federal Reserve ethics rules

U.S. Sens. Sherrod Brown (D-OH), Raphael Warnock (D-GA), Jon Ossoff (D-GA), Jeff Merkley (D-OR), and Kirsten Gillibrand (D-NY) forwarded correspondence this week to Federal Reserve Board of Governors Chairman Jerome Powell, advocating bolstered ethics rules.

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“The Federal Reserve System is responsible for ensuring a safe, stable, and fair economy and financial system,” the senators wrote. “Public trust in the institution is essential to fulfilling its mission. Therefore, Federal Reserve officials – the Board of Governors, Federal Reserve Bank Presidents and Vice Presidents, and senior Federal Reserve officers – must be held to the highest ethical standards and avoid even the appearance of any conflict of interest.”

The group maintain that Federal Reserve officials’ priority should be to act in the best interest of all Americans and not for personal financial gain.

“We appreciate the Fed’s work to create a stronger investment and trading policy for Federal Reserve officials,” the senators concluded. “However, more must be done, including taking clear steps to codify the Fed’s new trading restrictions – so that there are real teeth for violations – providing a discernible structure for addressing violations, and creating greater transparency to Congress and the American people.”