Federal Reserve probing Bostic’s trading after blackout period transactions

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The Federal Reserve is looking into trades that Raphael Bostic, the head of the central bank’s Atlanta district, made during restricted periods.

In the wake of disclosures that there were several incidents over the past several years in which Bostic’s investment activity violated Fed restrictions and blackout periods, the central bank said its Office of Inspector General would be reviewing the matter further.

“We welcome this review and will cooperate fully to ensure this matter is effectively resolved,” the Atlanta Fed said in a statement.

Trading by Fed officials over the past several years has been a hot-button issue. Disclosures that multiple officials had been involved in investment moves at a time when the Fed was taking moves to support markets preceded the early retirements of two regional presidents.

The controversy also led to a revised policy that severely restricts the moves Fed officials can make.

This is breaking news. Please check back for updates.

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