Reminder: Federal Reserve policymakers were actively trading stocks in 2020-2021 before selling in September-October 2021

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by FarrisAT

Since we here are focused on equity performance and are (mostly) hoping the value of our investments rise, I’d like to remind everyone that the Federal Reserve had multiple members actively trading equities while formulating extremely bullish policies in March 2020-September 2021.

Kaplan and Rosengren sold their individual stocks in September 2021. Some ETF holdings were also barred later in October 2021. QE taper was announced in late September 2021. From that point forward, equities have fallen roughly 20% on a market-weighted basis.

www.cnbc.com/2021/09/09/feds-rosengren-to-sell-individual-stock-portfolio-to-address-ethics-concerns.html

www.cnbc.com/2021/10/21/fed-to-ban-policymakers-from-owning-individual-stocks-restrict-trading-following-controversy.html

Coincidences are sometimes just that. And yet, when the people who formulate monetary policy are actively trading individual stocks… right before selling near the top of the market… you begin to lose faith. I’d personally wait to buy back in fully until the next Federal Reserve board financial disclosure report shows the members buying en masse again.

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