A new report has revealed that Atlanta Federal Reserve President Raphael Bostic has violated the U.S. central bank’s trading rules since taking office in 2017. The report noted that Bostic made 154 trades during “quiet” periods before interest-setting meetings, raising concerns about the timing and size of those trades.
Although the report confirmed that Bostic did not trade on inside information and had no conflict of interest, the trades created the impression of inside information and a conflict of interest. The Atlanta Fed said it was taking the matter seriously and would meet to discuss the details.
Bostic is not the only official to be caught up in trading scandals. Robert Kaplan and Eric Rosengren, presidents of the Dallas and Boston branches of the Federal Reserve, resigned after their involvement in trading during the coronavirus pandemic was discovered. Following these scandals, the Fed tightened trading rules for senior officials, barring them from buying individual stocks and other investments, and imposing restrictions on trading in cryptocurrencies, foreign currencies, and commodities.
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