Raphael Bostic, President of the Federal Reserve Bank of Atlanta, has violated the central bank regulations on trading, said the Office of Inspector. However, concrete evidence of the use of inside information and conflicts of interest are yet to be discovered by the investigators. Regardless, Bostic had an obligation to ensure compliance with the applicable rules and provisions.
Investigators found 154 trades occurred during the prohibited “blackout” windows during the course of Federal Open Market Committee (FOMC) meetings between March 2018 and March 2023. In addition, Bostic had filed fallacious disclosures, held Treasury securities over the allowed amount, as well executed trades for which he did not have clearance from the central bank.
Bostic defended he was not aware of the trades carried out on his behalf during prohibited periods and held his money manager accountable. The inspector general pointed out that Bostic could have prevented such violations if he were to review his monthly investments.
On separate occasions, Robert Kaplan and Eric Rosengren, the then-presidents of federal banks in Dallas and Boston, respectively, were also trading while establishing monetary policies in 2021. Both Kaplan and Rosengren were vindicated on their contravention although their actions once created an appearance of a conflict of interest, said the inspector general.
Bostic’s activities have yet again rekindled public suspicion of legislators deliberating financial gains via their decisions on interest rates.
