Powell said that the Fed is working to reform its rules on if and how its senior officials can own and trade securities, and added that he’s asked the Inspector General if any central bank leaders broke the law when they traded equities during the Covid-19 pandemic last year.

“The ethics system that had been in place for decades and had – as far as we know – served us well. And then that was no longer the case. So, we had no moment of denial about that,” he said.

His remarks come weeks after trading by regional Fed presidents drew scrutiny from both Washington and Wall Street. Both Robert Kaplan, formerly of the Dallas Fed, and Eric Rosengren, formerly of the Boston Fed, resigned last month amid the fallout.

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