What does it mean to ban officials from holding individual stocks, funds, institutional securities, cryptocurrencies and other financial assets

2022-08-07 0 By

The Federal Reserve on Friday formally imposed restrictions on its officials’ involvement in investment and trading activities, putting an end to the stock market turmoil that rocked the U.S. central bank in September and October.The new rules ban officials from owning individual stocks, industry funds, agency securities, bonds, cryptocurrencies, commodities, currencies and derivatives contracts;Banning short selling and margin lending;Senior officials must give 45 days’ notice of irrevocable transactions, obtain prior approval before buying or selling, and hold investments for at least one year;Trading is banned during periods of heightened stress in financial markets.Current Fed officials will have 12 months to deal with non-compliant holdings, while future recruits will have a six-month grace period, the Fed said.Since the outbreak, the United States kept printing money, money has been more than 2008 years of economic crisis, so the rate of inflation in the United States at the same time have also been soaring, the highest inflation rate in 40 years, prices rise, higher unemployment, the stock market, encryption surging currency, the dollar led by other countries inflation is rising, if continue,The U.S. dollar status will decline, and the U.S. cannot afford to sit idly by, given that the use of the YUAN will jump again in 2021.So to start raising interest rates, but from the start to find high inflation to now shouted so long didn’t raise interest rates, but also in the interest rate cuts, everyone felt great fun body is honest, until now has banned officials to fry in the round, buy various financial currency, to the bottom, the original is the government agency of the United States is very different from Chinese, the Chinese government is managed separately with finance,Government is greater than the financial institutions in the United States is different, the government depends on financial institutions, and government departments to implement various policies, are restricted to financial institutions, financial institutions because government officials are sent undercover, by manipulating the report of the government’s policy to get more fat, also explains why the interest rates have been added is not successful,A lot of the policies that have been called out have not been implemented because the voting officials don’t want to, and now the enforcement of the separation of finance and government is the first step.Then interest rates will start to rise to cool down inflation. As long as the financial sector and the government are separated as far as possible, the U.S. financial sector will lose its shelter for a short time and may face a bigger wave of decline, and the turmoil in the financial market will begin.