its. Elizabeth Warren On Monday, the US Securities and Exchange Commission was urged to investigate whether the three Fed leaders violated insider trading rules in 2020, when they bought and sold assets as the Fed stepped up efforts to save the US economy from economic turmoil.

Wallondon, who is a member of the Congressional Committee overseeing the Federal Reserve, urges US Securities and Exchange Commission Chairman Gary Gensler to investigate “ethical transactions” made by the Fed Vice Chairman Richard Clarida And the regional chairpersons Robert Kaplan and Eric Rosengren.

The Massachusetts Democrat’s remarks about Clarida and his transaction mark her latest and most high-profile attack on Fed officials’ transactions in 2020. Clarida is the senior representative of Federal Reserve Chairman Jerome Powell.

she has Many times criticized Fed officials Million-dollar transactions that took place last year, and the central bank took action based on potentially unique insights and other economic data.

“I am writing to request the SEC to investigate the securities transactions of senior Federal Reserve officials and determine whether these ethical transactions violate the rules of insider trading,” She wrote in a letter.

“There is no legitimate ethical or financial reason [Clarida] Or any other government official to participate in these dubious market conspiracies, while gaining non-public information and the power to make decisions that have extraordinary effects on the market and the economy,” Warren wrote.

A Fed spokesperson pointed out that Clarida’s transaction was made public in May and was in line with the “pre-planned rebalancing” of its account. One of the transactions included the conversion of US$1 million to US$5 million from a broad-based bond fund to a broad-based equity fund in February 2020.

A Fed spokesperson said in an email statement that Clarida’s transaction “was executed before he participated in the review of the Federal Reserve’s response to the emergence of the coronavirus, not during a power outage.” “The selected fund was selected with the prior approval of the board’s ethics officer.”

If financial transactions are part of a predetermined plan to buy and sell securities, rather than spontaneous, one-off transactions in response to market events, it is difficult to prove insider trading.

The Fed declined to comment further on when Clarida will submit its 2020 deal for review or when Fed ethics officials approve the plan. A Fed spokesperson also declined to comment on whether the Federal Reserve is cooperating with the US Securities and Exchange Commission, and the US Securities and Exchange Commission also declined to comment.

go to https://updatednews24.com/category/business/ to know more about business