Powell sold for between $1M and $5M in individual stock on October 1, 2020
federal Reserve President Jerome Powell He sold up to $5 million worth of stock from his personal account last October, according to a new financial disclosure form, a sale that occurred shortly before the crater of the Dow Jones Industrial Average.
NS Disclosure Forms, first reported by american prospect, Shows that Powell sold between $1 million and $5 million in shares of the Vanguard Total Stock Market Index Fund on October 1, 2020 – the Dow Jones Industrial Average fell nearly 6% during October 2020, the highest since early days The sharpest monthly decline. During the pandemic when the virus brought the US economy to a catastrophic halt.
There were also transactions listed without specific dates.
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The Fed did not immediately respond to Granthshala Business’s request for comment, but a spokesperson previously told The Wall Street Journal that Powell’s financial transactions comply with US central bank regulations and were approved by government ethics officials. The representative said the transaction without knowing the specific date was reported under rules that would have allowed things like regular reinvestments to be lumped together.
The disclosure comes after recent revelations that two of Powell’s associates — Federal Reserve Bank of Dallas President Robert Kaplan and Federal Reserve Bank of Boston President Eric Rosengren — bought and sold stock and real estate assets last year. The central bank took aggressive policy action to shore up the economy.
According to financial disclosure forms, Kaplan traded millions of dollars in stock in companies including Apple, Amazon and Google, while Rosengren traded in stocks and real estate investment trusts. Both men resigned after the dispute (though Rosengren cited health reasons for their early departure).
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In the wake of the trade scandal, Powell acknowledged the US central bank’s existing rules, which determine what its executives are allowed to invest and trade, are “not good enough” and need to be updated. Powell said the rules, which bar senior executives from owning bank shares, limit trading around monetary policy meetings and warn against any activity that could suggest a conflict of interest, the US Central are important to ensure public confidence in the bank.
“We need to make changes, and we’re going to do that as a result,” Powell told reporters after the Fed’s two-day policy-making meeting in September. “No one is happy with that.”
Still, some critics want the Fed to take additional steps and make major updates to stock-trading rules. In a September letter to all 12 regional Fed banks, Sen. Elizabeth Warren, D-Mass., called for a complete ban on stock ownership by senior executives.
“The controversy over asset trading by high-level Fed personnel highlights why it is necessary to ban the ownership and trading of individual shares by senior executives who are supposed to serve the public interest,” she wrote.
Warren has also called on the Securities and Exchange Commission to investigate the trading of Fed officials.
The latest revelation comes as white House Whether to tap Powell for another four years to lead the Fed – one of the most consequential economic decisions President Biden – before his term officially ended in February 2022. Press Secretary Jen Psaki has said Biden will make a decision with enough time to ensure the Senate can confirm the person.