This is one positive sign in an epidemic of federal officials from all three branches getting embroiled in questionable, if not illegal, stock trades. The new rules prohibit direct ownership of individual stocks and securities, require advance notice and approval of transactions for mutual funds and similar portfolios, and mandate that purchases are held for at least a year.
Despite the good news, Powell’s efforts highlight the chasm between what can be required of bureaucrats compared to the rather weak regulatory framework covering lawmakers.
Congress could create its own ethics rules for members, just as Chairman Powell has done at the Fed.. Members of Congress don’t face regulations nearly as rigorous, and this is by design. Congress took steps in the past to ensure that the bar is set very low for themselves.
We have written previously on the gutting of the STOCK Act and how it has deprived American citizens and journalists of critical oversight into the financial actions of lawmakers.
Powell said that the new regulations “raise the bar high” and indeed they do. Congress can raise their bar too, but they would also have to meet the bar they set.
That’s a tall order for the folks on Capitol Hill.
