Federal Reserve Vice Chair for Supervision Attends Bank of America Private Dinner During Silence Period, Compliance Questioned

Golden Finance reports that on June 20, Federal Reserve Vice Chair for Supervision Bowman attended a private dinner hosted by a U.S. bank for clients in New York on Wednesday evening local time. According to people familiar with the matter, the dinner was limited to invited clients. A few hours earlier, the Federal Reserve had just released its latest policy decision. The dinner took place exactly during the Fed’s external communications blackout period. This blackout period prohibits Fed officials from publicly commenting on economic conditions or monetary policy during the days before and after meetings, and it continues until the day after the meeting ends (Thursday). Although Fed rules do not explicitly prohibit closed-door meetings, they require officials to avoid sharing personal policy views with anyone who might benefit financially, unless those views have already been made public. The rules also state that officials should not allow any company to gain a reputational advantage over its competitors. Under the Fed’s communications policy, policymakers should carefully and strictly consider this principle when arranging meetings with people who might benefit from exclusive access to Fed officials, and when considering accepting invitations to meetings hosted by for-profit organizations that are not open to the public and the media. It remains unclear whether Bowman, who is responsible for bank supervision, violated the above rules by attending this dinner.
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