Federal Reserve Board – Ethics and Values

A set of comprehensive investment rules for policymakers and senior staff help support public confidence in the impartiality and integrity of the FOMC’s work by guarding against actual or apparent conflicts of interest.

The Investment and Trading Policies for Covered Individuals, which is section (V) of the FOMC Policy on Investment and Trading for Committee Participants and Federal Reserve System Staff, generally prohibit the purchase of individual stocks or sector funds, restrict active trading, and ensure the timeliness of reporting and public disclosure. Senior Federal Reserve officials involved in monetary policy decision-making are prohibited from investing in individual bonds, agency securities, cryptocurrencies, commodities, or foreign currencies, as well as from entering into derivatives contracts or engaging in short sales or purchasing securities on margin.

Additionally, to prevent any potential market timing concerns, senior Federal Reserve officials involved in monetary policy decision-making are required to provide 45-days’ non-retractable notice for purchases and sales of securities, obtain prior ethics approval for such transactions, and hold most investments for at least one year.

The Investment and Trading Policies for Covered Individuals cover FOMC members, Reserve Bank first vice presidents, Reserve Bank research directors, FOMC staff officers, the manager and deputy manager of the System Open Market Account, Board division directors who regularly attend Committee meetings, Federal Reserve System staff who regularly and materially advise FOMC participants on the conduct of monetary policy, and any other individual designated by the Chair, as well as spouses and minor children of covered individuals.

Additionally, the FOMC Policy on Investment and Trading for Committee Participants and Federal Reserve System Staff places restrictions on individuals with access to or knowledge of confidential FOMC information, including prohibitions on certain kinds of investments, a minimum holding period, and a trading blackout around FOMC meetings.

FOMC Policy on Investment and Trading for Committee Participants and Federal Reserve System Staff (PDF)

Policy for Addressing Covered Reserve Bank Employee Material Violations of the Investment & Trading Policy and Financial Disclosure Rules (PDF)

There are also rules that apply to how and when policymakers and senior staff speak publicly, so as to not impart an advantage to any specific group or individual.

FOMC Policy on External Communications (PDF)

A set of FAQs were developed to help policymakers and staff follow the Investment and Trading Policies for Covered Individuals.

FAQs

Class Waivers from the Investment and Trading Policies for Covered Individuals (PDF)