Factbox: How do Fed policymakers’ investments stack up

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The Federal Reserve Building is pictured in Washington, DC, the United States on August 22, 2018. REUTERS / Chris Wattie / File Photo

October 6 (Reuters) – Private investment by senior U.S. Federal Reserve officials has come under increasing scrutiny following the revelations and subsequent resignations of two regional Fed Bank chairmen over controversial deals last year at a moment when the central bank undertook a rescue of the economy.

The six members of the Fed’s Board of Governors are required to file annual financial statements, which are available to the public. Disclosures differ in depth of reporting detail and financial complexity.

Two of the members of the Fed’s Board of Governors – Fed Chairman Jerome Powell and Vice President Randal Quarles – are former private equity investors, and Vice President Richard Clarida is a former manager of investment.

Here’s a look at recent investment models from each Fed governor:

GOVERNOR LAEL BRAINARD

The disclosures show that Brainard, who is a possible candidate for promotion by the Biden administration to vice president for oversight or chairman of the Fed, did not make any transactions in 2020.

This is a change from past years: revelations show that she made 37 transactions in 2019; 133 times in 2018, 84 times in 2017 and 85 times in 2016; and up to 17 times in 2015. She did not trade any individual stocks or corporate bonds, but stuck to index and exchange traded funds.

In 2020, his largest holding in a single security was $ 500,000 to $ 1 million in an exchange-traded fund linked to the S&P 500 Index (SPDR S&P 500 ETF).

She also owns a home with a mortgage of between $ 1 million and $ 5 million at 4.25 percent, which she hasn’t refinanced since she started at the Fed.

VICE-PRESIDENT RICHARD CLARIDA

Clarida made five trades in 2020, including the February 27 sale of bond fund shares and the same-day purchase of two stock indexes, on the eve of Fed Chairman Jerome Powell’s statement indicating an action potential policy due to the worsening COVID-19 pandemic.

On August 3 of last year, he sold a large index fund and bought more stocks in one of the equity funds he bought in February.

In 2019, he completed seven transactions and in 2018, when he joined the Board, he completed 14 transactions, including the sale of Amazon shares and his wife’s holdings in the Vanguard Information Technology index, as required. their ethical agreement to take up their duties. .

In 2020, its largest single holding was $ 5-25 million in the PIMCO Muni Bond Fund Index.

FED CHAIR JEROME POWELL

Powell completed 26 transactions in 2020. In 2019, he completed 16 individually dated transactions and 25 “multiple” transactions. In 2018, he made 16 individually dated trades, mostly bonds or indexed indices, and 23 “multiple” trades, most of which were between $ 1,001 and $ 15,000. In 2017, it completed 46 transactions, half of which were classified as “multiple”.

In 2020, its largest single security stake was $ 5-25 million in the SPDR S&P 500 ETF, the largest U.S. exchange-traded fund, which tracks the S&P 500 Index.

GOVERNOR MICHELLE BOWMAN

Bowman made five transactions last year, all in retirement funds. In 2019, she completed four, including the sale of a commercial building in Kansas for between $ 50,001 and $ 100,000.

In 2020, its largest single security stake was $ 100,000 to $ 250,000 in a retirement fund (Principal LifeTime Hybrid 2035 CIT). Her spouse had larger holdings, including $ 250,001 to $ 500,000 in a retirement fund and the same range in the MIO Special Situations fund, both of which were part of his McKinsey 401K. He also owns Apple shares.

She also has two mortgages, one between $ 50,001 and $ 100,000 with a rate of 4.36% and the other between $ 1 million and $ 5 million with a rate of 2.75%.

GOVERNOR RANDAL QUARLES

The Quarles farms are the most numerous and the least opaque of the group.

He completed two transactions last year associated with the Cynosure Group, a Utah-based private investment firm that he helped form in 2014 along with other family members of his wife Hope Eccles: the April 2 purchase of Cynosure Investment Partners Class 2020 Venture and the same sale on December 21.

He reported 15 transactions in 2019, including the sale of Union Pacific and GE shares and the purchase of other securities described as private credit funds. Its 42 deals in 2018 were almost all share sales, but also included the purchase of stakes in a UK shipping operator and a tech venture capital group. In 2017, he completed 12 transactions, including the purchase of Target and Pfizer shares and several index funds, and the sale of Glaxo SmithKline.

Quarles said he owned “over a million dollars” in a range of assets, including a hotel and restaurant as well as other real estate in the Deer Valley ski resort in Utah and a ranch in Idaho. He also owns several individual stocks, including Union Pacific Corp (UNP.N), General Electric Co (GE.N) and Wabtec (WAB.N) plus $ 1-5 million in several funds, including the SPDR S&P 500.

He owns a house with a Wells Fargo mortgage of between $ 1 million and $ 5 million at an interest rate of 3.15%. In 2020, he also repaid a Wells Fargo home equity line of credit secured by an investment / rental property.

GOVERNOR CHRISTOPHER WALLER

The new Fed governor, former St. Louis Fed research chief Christopher Waller, was appointed in December of last year. As he served less than 60 days in 2020, he was not required to submit an annual return for 2020 and his first annual filing will be for 2021.

Reporting by Ann Saphir and Lindsay Dunsmuir; Editing by Andrea Ricci

Our Standards: Thomson Reuters Trust Principles.


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