Fed chairman Jerome Jerome Powell reportedly sold $5 million worth of broad-market index funds last year.
According to reports, Powell disclosed to the US Government Ethics Office that in October 2020, he sold between $1 million and $5 million in Vanguard's stock fund Vanguard Total Stock Market Index (VTI). He also made several other smaller stock and bond deals last year.
Although it is reported that Powell sold when the market was "in the doldrums", he sold before the stock market fell 1.5% after the stock market recovered from the V-shaped low of the epidemic. S & P indexThen it continued to rise, setting an all-time high.
VTI has risen more than 35 per cent since he sold.
The report also said that in December last year, Powell continued to sell smaller positions in Causeway International Value Fund (MUTF:CIVIX), Goldman Sachs room. Equity Dividend and Premium Fund (MUTF:GSPKX), iShares MSCI EAFE ETF (NYSEARCA:EFA) and iShares Russell 2000 ETF (NYSEARCA:IWM), up to $250000.
At a time when there was strong dissatisfaction with the holding and trading of stocks by senior Fed officials, the media conducted an in-depth investigation into the financial disclosure of Fed officials and found that three Fed officials held the same type of assets that the Fed was buying last year, including Powell.
Powell has ordered a review of the ethical rules governing the holding of financial assets and activities by senior Fed officials. Dallas Fed chairman Robert Kaplan (Robert Kaplan) and Boston Fed chairman Eric Rosengren (Eric Rosengren) subsequently resigned.
Senator Elizabeth Elizabeth Warren, who opposes Powell's re-election as Fed chairman, has called on the Securities and Exchange Commission (SEC) to conduct insider trading investigations into Kaplan, Rosengren and Federal Reserve Vice Chairman Richard Clarida.