Economics

Fed’s Daly Says Trading Controversy Shows Need for Rule Changes

  • It’s ‘clearly the case’ that rules on trading need to change
  • Public’s trust is imperative for Fed to do job effectively

Mary Daly

Photographer: David Paul Morris/Bloomberg
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The 2020 trading activity that led to the resignation earlier this week of two Federal Reserve bank presidents is disappointing and shows that the central bank’s rules around financial-market activity need to be changed, San Francisco Fed President Mary Daly said.

“There’s this collective sense of disappointment that this is a distraction from that type of thing,” Daly said in a call with reporters Wednesday, referencing the Fed’s work to get the U.S. economy through the pandemic.