Senators urge stronger ethics enforcement at Federal Reserve amid corruption concerns

U.S. Senators Elizabeth Warren and Rick Scott have raised concerns over what they describe as a "culture of corruption" at the Federal Reserve, urging stronger ethics enforcement. In a letter addressed to Federal Reserve Chair Jerome Powell, the senators criticized the lack of accountability for officials involved in improper trading and other violations of Fed ethics rules.

The senators referenced a report from the Federal Reserve Inspector General that identified numerous improper trades by Dr. Raphael Bostic, President of the Federal Reserve Bank of Atlanta. Despite these findings, Chair Powell has not taken action against Dr. Bostic, according to the letter.

“There has been no public indication that you have held Dr. Bostic accountable for his illicit trades,” wrote Senators Warren and Scott. They expressed concerns about an emerging culture of corruption under Powell's leadership and urged him to adopt a more robust ethics policy.

The letter highlights ongoing issues with ethics violations at the Fed, including trades by Chair Powell himself that allegedly breached rules and undermined public trust. The senators argue that these actions question the integrity of the institution and emphasize a need for reform.

“You allowed this culture of corruption to flourish, and were far too slow to put rules in place to address it," stated the senators in their letter. They criticized Powell for implementing inadequate rules and failing to enforce them effectively.

The senators concluded by providing Chair Powell with questions to address their concerns and reiterated their call for a comprehensive ethics policy to restore confidence in the Federal Reserve.