Howard Schneider and Jonnelle Marte

WASHINGTON, (Reuters) – With a delicate policy meeting just two weeks away and a renomination burning in the White House’s airspaces, Fed Chair Jerome Powell tightened Fed ethics rules Thursday. This has shifted his narrative away from an issue which had been a major target of his critics. It also removed a distraction from his job day.

David Beckworth, senior fellow at George Mason University’s Mercatus Center, stated that the Fed’s new investment limits came at “warp pace” just 44 days after initial reports regarding regional bank presidents’ trading activity.

It was necessary.

Two weeks from now, Powell will be attending a Fed policy meeting. At this meeting the central bank plans to announce its intention to cut monthly bond purchases.

If Powell does not take action on ethics, the Nov. 3, press conference will be subject to questions regarding the securities trading incident that led two regional bank presidents from resigning. That has led to constant drips of comment by critics who have taken Powell’s personal portfolio, mostly municipal bonds and index funds, under review.

The administration of President Joe Biden also let loose a few Fed appointments without any clear indication whether he will use open seats at the Board of Governors in order to start a drastic overhaul of monetary policy as his progressive supporters hope or opt for stability as well as a second term of Powell as the chair.

While the White House has not addressed the Fed ethics scandal in detail, Karine Jean-Pierre, White House spokesperson said on Thursday that Biden values the Fed’s independence.

She stated that President Biden believed all government agencies and their officials should adhere to high ethical standards. This included the prevention of conflict of interest suggestions.

Powell’s term ends in February and his nomination would need to be approved by the U.S. Senate.

If Powell is reappointed, the fallout of his ethics scandal could still be felt in confirmation hearings. Massachusetts Democratic Senator Elizabeth Warren said that she opposed Powell’s reappointment. This has made the ethics issue a major focus for Powell and his critics.

Those who were critical of stock trading will not be forgotten. They are either shifting their focus to other topics, like how regional bank presidents get hired, or they won’t accept the new rules.

He has taken initiative and set stricter limits for what Fed officials may own or sell than the ones that apply to Congress members.

PredictIt.org’s online political betting market offered a better outlook on Powell’s reappointment prospects. A “Yes” Powell contract implies a 74% chance that he will be renominated. It had fallen to 66% at the start.

Beckworth claimed that Beckworth’s ethics controversy was “an attack on him”. His Fed responded quickly to the ethics controversy. “… If he is nominated and there has been nothing done,… “I think it would look badly.”