Federal Reserve cracks down on how its officials invest

Washington — The Federal Reserve is imposing sweeping new restrictions on the investments its officials can own, a response to questionable recent trades that forced two top Fed officials to resign.

The Fed announced Thursday that policymakers and senior staff would be barred from investing in individual stocks and bonds. They would also have to provide 45 days' advance notice of any trade; receive prior approval from ethics officials; and be required to hold the investments for at least a year. In addition, officials would be barred from selling investments during periods of heightened financial market stress.

As a result, Fed officials would essentially be restricted to holding mutual funds.