SIMONE DEL ROSARIO: CHINA IS TRYING TO INFILTRATE THE U-S FEDERAL RESERVE AND STEAL INFORMATION AND INFLUENCE. THAT’S ACCORDING TO A SENIOR SENATE REPUBLICAN AND RANKING MEMBER OF THE SENATE COMMITTEE ON HOMELAND SECURITY.
IN A REPORT OUT TUESDAY TITLED CHINA’S THREAT TO THE FED, OHIO SENATOR ROB PORTMAN SAYS CHINA’S BEEN TARGETING THE CENTRAL BANK SINCE AT LEAST 2013,
DOCUMENTING EFFORTS TO RECRUIT U-S BASED ECONOMISTS, EVEN FORCIBLY DETAINING AN EMPLOYEE ON A TRIP WITH HIS FAMILY IN 2019.
THE REPORT SAYS CHINESE OFFICIALS ALLEGEDLY TAPPED HIS PHONES AND COMPUTERS AND UNDER THREAT OF IMPRISONMENT, TOLD HIM HE WAS TO SHARE NON-PUBLIC, ECONOMIC DATA AND ADVISE SENIOR GOVERNMENT OFFICIALS ON SENSITIVE ECONOMIC ISSUES.
THE FED TOLD THE COMMITTEE THEY REPORTED THE INCIDENT TO THE FBI AND STATE DEPARTMENT AT THE TIME, AND ISSUED A WARNING TO ALL ECONOMISTS ABOUT TRAVEL TO CHINA.
THE REPORT ALSO SAYS THE FED ITSELF IDENTIFIED 13 PERSONS OF INTEREST WITH TIES TO CHINESE TALENT RECRUITERS, AND 2 INSTANCES OF UNAPPROVED DATA TRANSFERS.
PORTMAN, IN A STATEMENT, SAYS I “HOPE OUR INVESTIGATION…WAKES THE FED UP TO THE BROAD THREAT FROM CHINA TO OUR MONETARY POLICY. THE RISK IS CLEAR, I URGE THE FED TO DO MORE, WORKING WITH THE FBI, TO COUNTER THIS THREAT FROM ONE OF OUR FOREMOST FOREIGN ADVERSARIES.”
FED CHAIR JEROME POWELL SAID THEY TAKE ANY VIOLATION SERIOUSLY AND WOULD NOT HESITATE TO INCLUDE LAW ENFORCEMENT WHEN APPROPRIATE.
THE REPORT – RELEASED AS THE FEDERAL RESERVE KICKS OFF A TWO-DAY POLICY MEETING IN WASHINGTON, WHERE THE BOARD IS EXPECTED TO VOTE TO RAISE ITS INTEREST RATE ONCE AGAIN.
FED POLICY DISCUSSIONS ARE LARGELY CONFIDENTIAL AND ONCE MADE PUBLIC, HAVE MAJOR IMPACTS ON THE MARKET.
IN NEW YORK FOR JUST BUSINESS I’M SIMONE DEL ROSARIO.
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