- The Federal Reserve announced sweeping new rules for its top officials Thursday, banning trading in individual stocks and bonds.
- Those new rules come on the heels of a swelling ethics controversy over whether central bank officials should be able to trade while their policies can, and often do, move markets.
- Officials will be restricted primarily to owning mutual funds, which they will have to hold for a year and will need permission to buy or sell.
See also All Quiet On The Default Front As Biden Dithers The Night Away And Regional Bank Stocks Decline On Fed Tightening
Responding to a growing controversy over investing practices, the Federal Reserve announced Thursday a wide-ranging ban on officials owning individual stocks and bonds and limits on other activities as well.
The ban includes top policymakers such as those who sit on the Federal Open Market Committee, along with senior staff. Future investments will have to be confined to diversified assets such as mutual funds.