Federal Reserve approves stricter trading rules

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — The Federal Reserve has formally adopted sweeping new rules that will limit the ability of its top officials to invest in financial markets, a change intended to prevent conflicts of interest involving investments affected by Fed policies. The stricter rules emerged after an outcry over questionable trades that were made by several top Fed policymakers. Under the new rules, Fed officials may not invest in individual stocks, bonds or cryptocurrencies and are limited to diversified investments such as mutual funds. They must provide 45 days’ notice of any trade and secure approval of such trades. And they will have to provide public notice of any trades made in the previous 30 days.