Today’s unfolding events lead us to ask, “What’s up at the Federal Reserve?”
Dallas Federal Reserve Bank President Robert Kaplan announced on Monday, September 27th that he will leave his job on Oct. 8 to eliminate any “distraction” to the central bank related to his personal investment activities.
Earlier in the day, the president of the Federal Reserve Bank of Boston announced his resignation on September 30, ending his term nine months before his scheduled retirement. Eric Rosengren, the Boston Fed’s leader since July 2007, said worsening kidney disease had compelled him to leave office.
Recently, there’s been a public outcry the two Fed head honchos traded in securities even as they played key roles in deciding U.S. monetary policy.
One has to ask the question, “Has the Federal Reserve painted the nation’s economic future into a corner with no viable way out?”
On September 20th, BusinessInsider.com reported the story this way—
Two Federal Reserve regional presidents apologized on Thursday for multi-million-dollar share purchases that generated the “appearance” of conflicts of interest, according to multiple reports.
In simultaneous statements, Dallas and Boston Fed presidents Robert Kaplan and Eric Rosengren expressed regret for their investment decisions, which involved purchases of big-name firms like Apple, Alibaba, and Tesla.
Federal Reserve Chairman Powell responded this way—
“Because the trust of the American people is essential for the Federal Reserve to effectively carry out our important mission, Chair Powell late last week directed Board staff to take a fresh and comprehensive look at the ethics rules around permissible financial holdings and activities by senior Fed officials.”
Is there any need for the Austin Report to comment on this? Well, we can’t resist.
The people in power in America appear to be making decisions and trading their personal portfolios before releasing those decisions to the public. That’s known as “Insider Trading” and calls for an investigation by the SEC.