Fed Governors Face Scrutiny Over Secret Meetings with Bankers

Two Federal Reserve governors have been accused of violating blackout period rules by meeting with private-sector banking officials. The meetings in question took place during the central bank's blackout periods, when such events are subject to restrictions.

The calenders for May and June showed Vice Chair for Supervision Michelle Bowman met with the head of the Massachusetts Bankers Association the week before the June 16-17 Federal Open Market Committee meeting. A Fed spokesperson said the meeting was in preparation for a public speaking engagement of Bowman's at an event hosted by that organization in the week following the FOMC meeting.

The blackout period rules are in place to prevent conflicts of interest and ensure that decisions made by the central bank are not influenced by external factors. The Fed has come under scrutiny for its handling of these meetings, with some critics arguing that they undermine the integrity of the institution.