Newly released Federal Reserve calendar records show that two Fed officials met with banking figures or attended related events in May and June around the Federal Open Market Committee’s blackout window. There is no evidence in the records that they broke Fed communications rules, but the timing stands out because such contacts are unusual in that period.
The disclosure surfaced as pressure from Donald Trump on the Federal Reserve has started to build again.
Bowman and Powell attended bank-related events in the week before the June FOMC meeting
Michelle Bowman, the Fed’s vice chair for supervision, met with the head of the Massachusetts Bankers Association in the week before the June 16-17 FOMC meeting, according to her calendar. A Fed spokesperson said the meeting was preparation for a public speech she was due to give to the association one week after the FOMC meeting.
Jerome Powell attended a reception hosted by BNY Mellon’s global board on June 9, also one week before the June FOMC meeting, according to his schedule. A Fed spokesperson said Powell attended as an invited guest and did not speak at the event.
Bloomberg requested the calendar records from the Fed in July, and the central bank released them late last Friday.
What the blackout rules allow
Under Fed rules, officials may not publicly discuss their views on the economy or monetary policy for about a week and a half before an FOMC meeting and through the day after the meeting ends. Even outside that period, officials may not disclose such views in private settings unless they are repeating remarks that have already been made public.
In this case, Fed officials said the events did not involve discussion of monetary policy.
Release lands as Trump renews pressure on the Fed
The calendars became public as Trump’s pressure campaign on the Fed was picking up again.
Trump had at one point eased his public pressure on the central bank after Kevin Warsh succeeded Powell as Fed chair this year. The latest developments, however, suggest that pressure is re-emerging. At the same time, Trump’s approval ratings have fallen noticeably ahead of the November midterm elections, with polls showing voter dissatisfaction over living costs and his handling of the Iran war.
US nonfarm payrolls rose by an unexpected 162,000 in August, while the unemployment rate was unchanged. Investors then increased bets that the Fed would raise rates at its next meeting, pushing down US stocks and short-dated Treasury prices.
Trump responded angrily to the market decline. He said stocks 「should be rising」 because employment data were strong and credit and economic conditions were good, but instead fell because of inflation worries.
White House chief economic adviser Kevin Hassett struck a less aggressive tone the same day. He said strong employment data strengthened the case for holding rates where they are, adding: 「We respect the Fed’s independence, but I think the case for keeping rates unchanged will be quite strong.」
Earlier Bowman dinner had already triggered calls for an inquiry
Bowman had already drawn attention over a private dinner during the blackout period.
Bloomberg and other outlets previously reported that Bowman attended a private dinner hosted by Bank of America in New York several hours after the June FOMC meeting ended. Bowman later said she did not discuss her monetary policy stance at the dinner and said she had 「always complied with all applicable FOMC rules and ethical standards」 and would continue to do so.
The dinner later prompted Senator Elizabeth Warren to call on the Fed inspector general’s office to open an investigation.
Bowman’s June 17 calendar also shows that she met Republican Senator Bill Hagerty of Tennessee about an hour after that day’s FOMC meeting ended and before the rate decision had been released publicly. Fed officials are allowed to communicate with government officials during the blackout period, including discussions involving nonpublic information, but they may not disclose confidential FOMC information without written authorization from the chair.
May calendar included additional banking roundtables
Bowman’s schedule also shows that she attended a roundtable at the Colorado Forum on May 7 and another roundtable hosted by the New Hampshire and Vermont Bankers Associations on May 14.
A Fed spokesperson said both events were listening sessions related to supervisory matters and did not include discussion of monetary policy.
Contact between Fed officials and outside parties around an FOMC decision is not itself a violation. Even so, meetings with banking industry figures or the public during that window are not common.