The Federal Reserve said Monday that its internal watchdog will probe whether trading activity by some of the central bank’s senior officials was legal and in line with the Fed’s ethics rules. The Fed announced in a statement that it was engaged in talks with its Office of Inspector General (OIG) about the review, which comes after disclosure of transactions in 2020 by Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren prompted a public outcry. Kaplan and Rosengren have both resigned in the wake of the controversy, which involved revelations that the two bought and sold securities in 2020, a year that the Fed took extraordinary measures that boosted the economy and buoyed financial markets. While the Fed found their actions didn’t break any rules, Federal Reserve Chair Jerome Powell ordered a review of ethics regulations around holdings and other financial activities by senior central bank employees. Powell told …
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