The Federal Reserve's public schedule shows that Bowman and Powell participated in banking-related activities a week before the FOMC meeting. It is said that the activities did not discuss monetary policy, but this exposure coincides with the renewed pressure from Trump on the Federal Reserve.

Written by: Wu Yu, Jin Shi Data

The latest publicly released schedule from the Federal Reserve shows that two board members met with banking industry representatives or participated in related activities during the "quiet period" before and after the Federal Open Market Committee (FOMC) meetings in May and June of this year. Although there is currently no evidence that they violated the Federal Reserve's communication regulations, these contacts are relatively unusual in terms of timing.

Michelle Bowman, the Vice Chair responsible for supervisory affairs at the Federal Reserve, had a meeting with the head of the Massachusetts Bankers Association one week before the FOMC meeting on June 16-17. A Federal Reserve spokesperson stated that this meeting was to prepare her for a public speaking engagement hosted by the association the week following the FOMC meeting.

Former Federal Reserve Chairman Jerome Powell also attended a reception hosted by the global board of the Bank of New York Mellon on June 9, also one week before the FOMC meeting. A Federal Reserve spokesperson mentioned that Powell attended as an invited guest and did not speak during the event.

These schedule records were requested by Bloomberg in July, and the Federal Reserve released them last Friday evening.

According to regulations, Federal Reserve officials are prohibited from publicly discussing their views on the economy or monetary policy about a week and a half before the FOMC meeting and the day after the meeting concludes. Even outside of the quiet period, officials are not allowed to share relevant opinions in non-public settings, unless they are merely repeating previously public statements.

As the above schedule was exposed, Trump's pressure on the Federal Reserve has also begun to resurface.

Trump had previously reduced public pressure on the Federal Reserve after Kevin Warsh took over as chairman from Powell this year. However, his latest actions indicate that the pressure is reemerging. Meanwhile, Trump's approval ratings have significantly declined ahead of the midterm elections in November, with polls showing that voters are dissatisfied with his handling of living costs and the Iran war.

In August, U.S. non-farm payrolls unexpectedly increased by 162,000 jobs, and the unemployment rate remained stable. Investors then raised their bets on a rate hike at the Federal Reserve's next meeting, leading to declines in U.S. stock markets and short-term Treasury prices.

Trump subsequently expressed dissatisfaction with the market's decline. He stated that given the strong employment data, good credit, and economic conditions, the stock market "should go up," but it fell due to concerns over inflation.

Trump's statements were even more aggressive than those of White House Chief Economic Advisor Kevin Hassett. On that day, Hassett stated that the strong employment data strengthened the rationale for maintaining current interest rates, noting, "We respect the independence of the Federal Reserve, but I think the reasons for keeping rates unchanged are quite sufficient."

Bowman's previous private dinner also sparked calls for investigation

Bowman had previously attracted attention for attending a private dinner during the quiet period.

Media outlets like Bloomberg reported that Bowman attended a private dinner hosted by Bank of America in New York just hours after the June FOMC meeting concluded. Bowman later indicated that she did not discuss her monetary policy stance during the dinner, stating that she "has always adhered to all applicable FOMC regulations and ethical standards" and would continue to do so.

This dinner subsequently prompted U.S. Senator Elizabeth Warren to call for an investigation by the Federal Reserve's Office of Inspector General.

Bowman's schedule on June 17 also indicated that about an hour after the FOMC meeting ended and before the interest rate decision was publicly announced, she met with Republican Senator Bill Hagerty of Tennessee. Federal Reserve officials are allowed to communicate with government officials during the quiet period, including discussing non-public information; however, confidential FOMC information cannot be disclosed without written authorization from the chairman.

It is not a violation in itself for Federal Reserve officials to engage with outsiders before and after FOMC decisions, but communicating with banking representatives or the public during this time window is not common.

Bowman's schedule also indicated that she attended a roundtable hosted by the Colorado Forum on May 7 and a roundtable event organized by the New Hampshire and Vermont Bankers Association on May 14. Federal Reserve spokespersons stated that both events were for gathering opinions on regulatory matters and did not involve discussions of monetary policy.