Fed rules issued last Thursday limit senior officials’ investments to “purchasing diversified investment vehicles, like mutual funds,” the central bank said. Tuesday’s bill would codify that into law.
The bill would prevent the Fed’s board of governors, 12 regional presidents and senior staff from trading individual stocks, but allow investments in diversified mutual funds, investment trusts and U.S. Treasury securities, according to The Wall Street Journal.
The bill would also give officials a window to sell disallowed securities. Alternatively, officials could hold their investments or put them in a blind trust.