Senators Elizabeth Warren, Ranking Member of the U.S. Senate Committee on Banking, Housing and Urban Affairs, and Rick Scott sent a letter to Federal Reserve Chair Jerome Powell warning of a “culture of corruption” at the Federal Reserve and urging stronger enforcement of the Federal Reserve’s Investment and Trading Policy and financial disclosure rules. The letter cites a September report by the Federal Reserve Inspector General that identified hundreds of improper trades by Dr. Raphael Bostic, President of the Federal Reserve Bank of Atlanta, and argues there has been no public indication that Powell has held Bostic accountable. It also points to a broader series of ethics scandals involving Federal Reserve officials, criticises the Board for adopting what the senators describe as a weak and unenforceable policy after the Inspector General’s recommendations, and renews calls to replace it with a stronger ethics policy. The senators included a list of questions for Powell to answer.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-02-14
U.S. Senate Committee on Banking, Housing and Urban Affairs members press Federal Reserve Chair Powell to strengthen ethics enforcement over improper trading
Senators Elizabeth Warren and Rick Scott urged Federal Reserve Chair Jerome Powell to enforce stricter adherence to the Fed’s Investment and Trading Policy and financial disclosure rules, citing a "culture of corruption." Their letter references a report by the Federal Reserve Inspector General detailing improper trades by Dr. Raphael Bostic and criticizes the Board's response to ethics scandals. The senators also posed questions to Powell regarding these issues.