Atlanta Fed President Bostic Found in Violation of Ethics Policies

An investigation into Atlanta Federal Reserve President Raphael Bostic's securities trades revealed violations of the Fed's ethics policies. Though the probe found no federal insider trading or conflict of interest law violations, it identified multiple breaches, including undisclosed trades during blackout periods and inaccuracies in financial disclosures.

A government investigation has concluded that Atlanta Federal Reserve President Raphael Bostic violated several of the central bank's ethics policies through his securities trades and investments.

The Federal Reserve's Office of Inspector General discovered that Bostic's actions created the appearance that he acted on confidential information, posing a conflict of interest. However, no federal laws regarding insider trading or conflict of interest were broken, as per the report released on Wednesday.

Investigators reviewed financial activities over a five-year span starting in 2017, finding that trades on Bostic's behalf occurred during 'blackout' periods surrounding Federal Open Market Committee meetings. Bostic also failed to report some transactions accurately on annual disclosure forms and exceeded the policy limit for holding U.S. Treasury bonds. In 2022, Bostic acknowledged the violations and amended his financial disclosures. The Atlanta Fed board accepted his explanations while Federal Reserve Chair Jerome Powell asked for further review.

(With inputs from agencies.)