US Federal Reserve bans officials’ trading with focus on Powell re-nomination

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US Federal Reserve bans officials’ trading with focus on Powell re-nomination

Late on Thursday, the US Federal Reserve had suspended stock trading of top officials and policymakers of the Central Bank while unfolding a flurry of restrictions on investment activities of Fed officials, as a nomination wrangle for Fed Chair has ratcheted up with Jerome Powell’s term having been set to expire by February, 2021.

In point of fact, latest set of actions from the US Federal Reserve to ban individual stock purchases of top officials of Central Bank came forth nearly six weeks after active participation of some US Fed policymakers in the capital market had stemmed an uproar over ethical concerns.

More importantly, recent move from the US Fed comes over the heels of a nomination battle for the US Fed Chair, as US President Joe Biden is expected to announce soon on whether he would re-nominate current Chair Powell whose term has been set to expire by February, 2021 as beforementioned.

Focus on Powell re-nomination

In tandem, Fed Chair Powell’s odds in gambling market had depreciated sharply over recent past amid steep scrutiny from Democrats on his performance to tackle a sky-scrapping inflation alongside trading scandal from top Fed policymakers and officials.

Nonetheless, according to an online betting site Predditlt, Fed’s Powell now has a 75.0 per cent chance of being re-nominated in the US Senate compared to a 90 per cent recorded on September 12, however, the odds are still much-higher than late-September when his odds had dipped to 61.0 per cent.

However, odds in favour of Federal Reserve Governor Lael Brainard having nominated, had increased rapidly to 23.0 per cent from a September-low of 6.0 per cent.

Federal Reserve