Jerome Powell's Insider Trading | The Fed.

big issue in the news lately has been

stock trades by the federal reserve we

had a particular member i believe it was

richard clarida who

moved money from a bond fund to a stock

fund the day before an announcement by

the federal reserve elizabeth warren

made a similar move but not near one of

these catalyst states we've had other

broker or other members of the federal

reserve also

make moves in stock portfolios whether

it's to different funds or to uh to

different stocks or whatever we have

seen

such uh such drama

and what we have over here is uh now new

information that jerome powell may have

traded potentially up to a million

dollars right before a catalyst event

now drone powell so far has not been uh

part of uh sort of any uh

what's it called uh

you know scrutiny up until now and this

disclosure so let's uh let's see what

we've got here how big a deal is

powell's million dollar stock trade

there's no way that insider knowledge

would have helped jerome powell's one

stock trade in fact his timing was lousy

oh interesting john throws it all out

there in the summary so let's see what

we got here

uh let's see a journal of american

progressive left has published a piece

highlighting that jerome powell chairman

of the federal reserve sold between one

and five million in stock on october 1st

of last year he did so through a

vanguard fund that tracks the total

market how big of a deal is this kind of

also worth noting that the stock market

just barely

was getting out of the disaster of the

september sell-off last year around

october 1st and remember that we walked

basically right into the election drama

around i want to say it was week two and

three maybe it was even one through

three of october of last year that were

kind of a disaster right before the

election it was a perfect opportunity to

go shopping in stocks and took big

advantage of shopping and buying the dip

then

and it looks like jerome powell kind of

bought before that so let's see here

the full disclosure can be found here

thank you very much let's go ahead and

look at the full disclosure so there it

is jay pow i certify the statements are

true and correct and so what do we got

here

we have

t row price equity index

value okay these are these are just the

assets that we have so he's got about 1

to 500 500 000 to 100 or to 1 million

dollars in a t row price essentially

something that tracks the s p 500

another one to five million dollars in

an s p 500 blackrock index and then a

spider index 100 to 250 000. so he's

pretty much all in on spy

kind of interesting spouses uh

employment

video production here value not readily

accessible okay so where are the moves

here

let's see for these are other assets

that he has i'm surprised i thought

jerome powell would have a whole bunch

more assets to put on his disclosure

here a lot of these are

smaller sort of individual bonds that

he's got here 2500 to 5 000

relatively

small numbers

for jay powell in my opinion

then here we go mutual life insurance

cash value 100 to one mill okay vanguard

total stock market index fund a million

to five here we go here's where the

larger numbers are

uh i shares rush russell 3000 15 000 to

fifty thousand

and here we go transactions so really

the transaction that was most

interesting was right here

the sale what

he sold the vanguard total stock market

index on october 1st

uh between 1 million and 500 000 sorry 1

million and 5 million dollars worth why

would he sell

that's interesting so he actually

sold a chunk here october 1st

it doesn't look like he rebought based

on this oh here we go what is this

oh here was here was some buying and he

didn't no this is a sale as well

that is interesting we don't actually

get dates for some of these other

purchases which are kind of annoying we

have all these endnotes that we'd have

to go through to find them

uh that's not so ideal and in fact i

don't even know what's the footnote here

i don't even know that we're gonna get

dates

see none of these have actual dates just

says see endnote

that's

quite interesting

so gifts and travel reimbursements

liabilities

transactions

okay the section does not include things

having to do with personal residence

treasury bonds things like this okay got

it it's not a big deal

other disciples there's nothing on the

dates for the purchases so it's a little

kind of odd that you would see um

oh and he closed his life insurance

policy in 2020 lots of liquidating but

anyway so i wonder if he bought a big

house or something like that liquidated

or something like that that would be

interesting but why would you sell

october 1st

uh

and

september 21st i agree i think this

timing's actually pretty lame

where are your buys man i mean you got

all these smaller purchases here but

there is no big purchase here

that's very odd jay pal paper handed did

he buy a house let's see jerome powell

purchase house let's just see

uh okay oh

thank you safari jerome powell purchases

house

see if he did

no

there's really no talk about him

purchasing you think that that would be

news if he bought a house right so he

didn't buy a house i wonder what he did

with his money let's see what the

opinion article makes uh makes of this

before we get we're still waiting on

united earnings by the way it looks like

fed chairperson a rich man from his

career in private equity holds an

impeccably dull investment portfolio i

kind of agree like

i'm shocked it's not that large

it's smaller than expected apparently he

got out earlier than expected

uh

you know virtually all passive and

spread across asset classes does not

appear to have done much trading barely

small purchases and a sale that looks

like it's either rebalancing or some

sort of

income to reinvest yeah it's odd one big

trade was on october 1st

it uh covered the whole market so no

inside knowledge of particular sectors

would have helped

yeah this is when the trade occurred

right here and the market

took off like 33 since then so very odd

sale

lousy timing completely agree with that

35 percent gain on on a good chunk of

money

so he's already publicly addressed his

intentions in august and september of

that year

yeah he should have been keen to buy and

not sell no kidding

the american prospect this is that

left-leaning group the liberal group

they put together a narrative that makes

the transaction seem more sinister i

don't know i'm looking at the

disclosures and having been in this

market every single day here

this seems stupid yeah man

there you go j pal sold and got all in

on btc in ethereum

now he would have to disclose that so

unless he's not disclosing it which i'm

not suggesting things couldn't be hidden

he would have to disclose that as an

asset

that's a that would be absolutely

hilarious could you imagine if jerome

powell liquidated his stocks and went

all in on crypto oh my gosh that would

be the funniest thing ever

uh fox business popular with

conservatives followed the story and

headlined jay powell sold up to 5

million in stock in 2020 before market

tanked

um

that i don't think so

i don't think so

uh maybe yeah they're referencing maybe

the little bit of wobbling before the

election that's nonsense so it looks

like the left group is nonsense fox news

was nonsense on this headline sounds

like the media is just being dumb as

usual

the real issue here uh is the the fed

officials have to be worried about

conflicts of interest powell whether it

needs to be reappointed or not blah blah

blah

uh

i see

i just want to know where the money went

honestly i i want to know where the

money went

did he go cash heavy i mean that's

i mean you'd think it would

it would show something i mean well then

again you don't have to show purchases

you would have to show assets

so maybe does he show assets yeah cash i

think he went to cash

oh my gosh

why

that's the only thing that makes sense

because otherwise he would have had to

show on a purchase so he probably went

to cash for some reason you know he's

probably just

i mean he's never professed to be a

trader i mean don't get me wrong like i

i like jay pal but yeah he's got he's

got a bunch of money sitting around in

cash

uh i i don't you know he doesn't have to

disclose a purchase for cash

and there there are no purchases here

under transactions for anything close to

that amount i mean you've got some money

maybe here 50 to 100 000

but again you had more sales over here

he sold a bunch of stuff in 2020. i

think he cashed out he's just like f it

you know that's that's about the extent

that i could see this

and

do i think it was sinister not really

if anything it was stupid

but then again hey maybe for his own

peace of mind he's just like look i i

can't take it anymore like it's too

stressful we've rebounded a good amount

i just i want to get ready to

potentially retire i'm just gonna sit on

some cash that's the only thing that i

could really expect here uh and so

you know in my opinion

i don't necessarily see anything wrong

with this i think this is probably a

personal decision for jay pal and uh i'm

not gonna complain about it like uh fox

or that liberal left group that uh

implied it was sinister

it's just my thoughts just my two cents

on it all right

anyway that's j pal four yet

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