Warren Rebukes Weak Fed Ethics Rules, Inspector General for Contributing to Culture of Corruption by Failing to Hold Fed Officials Accountable

Press Release

Date: May 17, 2023
Location: Washington, DC

"In July 2022, your office released the findings of its investigation of trading activities by senior officials of the Federal Reserve Board of Governors… gaps in the review and your uncritical acceptance of explanations for clearly improper behavior render the findings of the Inspector General's (IG) report simply not credible. And your failure to effectively carry out your duties as an "independent and objective oversight authority' undermines the recommendations made in your April 2023 evaluation of the Fed's personal investment and trading rules and conflict of interest monitoring processes.


Your response to these findings was feckless… Instead of insisting that powerful Federal Reserve leaders meet high ethics standards, you eagerly accepted their excuses for failure. You made no recommendations to hold Chair Powell and Clarida accountable for their improper trading and disclosure failures, and in doing so, contributed to the Fed's culture of corruption and impunity.


Your failure to hold Chair Powell -- at whose discretion you serve -- accountable is the clearest possible example showing that your office lacks the tools necessary to effectively perform its important responsibilities as the Fed's independent watchdog. That's why I have introduced bipartisan legislation, S. 915, which would modify the Fed IG role to require that the IG be appointed by the President and confirmed by the Senate (the same structure in place at 30 federal agencies."