type: timeline_event The Federal Reserve announced comprehensive trading restrictions for senior officials following a major financial ethics scandal. In response to controversial trades by regional Fed bank presidents Robert Kaplan and Eric Rosengren during the Covid-19 pandemic, the Fed imposed strict new rules prohibiting senior officials from trading individual stocks, bonds, derivatives, and government-backed securities. Senator Elizabeth Warren called for an SEC investigation, arguing the trades potentially violated insider trading laws, particularly highlighting a trade by Vice Chair Richard Clarida just before a major policy statement. The new rules require pre-approval for all trades, mandate holding periods for investments, and aim to restore public confidence in the Federal Reserve's leadership by preventing conflicts of interest.