Senators Rick Scott (R-Fla.) and Elizabeth Warren (D-Mass.) have sent a strongly worded letter to Federal Reserve Chair Jerome Powell, demanding accountability for Federal Reserve officials involved in improper trading and violations of ethics rules.
The letter, sent on February 17, 2025, follows a September 2024 report by the Federal Reserve Inspector General (Fed IG) that revealed hundreds of improper trades by Dr. Raphael Bostic, President of the Federal Reserve Bank of Atlanta.
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Despite the findings, Dr. Bostic has yet to face any public consequences, raising concerns about a pervasive culture of corruption within the Fed.
In their letter, the senators expressed frustration with Chair Powell’s handling of the ethics scandals, accusing him of allowing a “culture of corruption to flourish” under his leadership.
They criticized Powell for being slow to implement adequate ethics rules and for failing to enforce them effectively. “You allowed this culture of corruption to flourish, and were far too slow to put rules in place to address it,” the senators wrote. “When you did establish these rules, they were inadequate. And now it appears that you are refusing to enforce them.”
The Fed IG’s report on Dr. Bostic is the latest in a series of ethics scandals that have plagued the Federal Reserve in recent years. High-ranking officials, including Chair Powell himself, have been implicated in trades that violated the Fed’s ethics rules and undermined public trust. These incidents have raised serious questions about the integrity of the Federal Reserve and its ability to maintain impartiality in its decision-making processes.
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The senators highlighted that these repeated infractions have damaged the credibility of the Federal Reserve, an institution critical to the stability of the U.S. economy. “These failures represent a stain on your record as Fed Chair, and have damaged the integrity and effectiveness of the Federal Reserve,” the letter stated.
Senators Scott and Warren urged Chair Powell to adopt a more robust ethics policy and take immediate action to hold officials accountable for their misconduct. They emphasized that the lack of accountability for Dr. Bostic and others sends a troubling message that ethics violations will be tolerated at the highest levels of the Federal Reserve.
The senators also posed a series of questions to Chair Powell, seeking clarity on his plans to address the ethics issues and restore public trust in the institution.
They reiterated their call for transparency and accountability, stressing that the Federal Reserve must uphold the highest ethical standards to maintain its credibility and effectiveness.
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