The Federal Reserve said it began discussion of an independent review of trading by its senior officials

The Fed says it began discussion last week with the Office Of Inspector General (OIG) re initiating an independent review of trading activity by senior officials

• "As part of our review, we began discussions last week with the Office of Inspector General for Federal Reserve Board to initiate an independent review of whether trading activity by certain senior officials was in compliance w/both relevant ethics rules & law."

This comes in the wake of revelations of trading activities by various Fed officials that has raised concerns about 'insider' knowledge (for want of a better description).

Two regional Federal Reserve presidents have resigned, Kaplan (Fed Dallas) and Rosengren (Boston). So far there is no indication of illegality but its more a case of being seen to be doing the right thing.

Over the weekend questions were raised about the activity of Fed Vice Chair Clarida. Again, there is no indication of illegality and indeed it appears Clarida's trades were pre-planned months ahead.