The Ceaseless Quest For Rankings

If you want some tangible evidence of how rankings have affected the activities of colleges, universities, and other institutions of higher education, you need look no farther than Philadelphia, Pennsylvania– where a federal court jury recently convicted Moshe Porat, the long-time dean of the Temple University Richard J. Fox School of Business and Management, of mail and wire fraud in connection with a scheme to boost that school’s U.S. News and World Report ranking.

According to a statement released by the U.S. Attorney’s office for Eastern Pennsylvania, Porat, who served as the dean of the business management school from 1996 to 2018, was convicted after the jury found that he had “conspired and schemed to deceive the school’s applicants, students, and donors into believing that the school offered top-ranked business degree programs, so that they would pay tuition and make donations to Temple.” The statement explains that Porat and two other conspirators “agreed to provide false information to U.S. News about the number of Fox’s [on-line MBA (“OMBA”) and part-time MBA (“PMBA”)] students who had taken the Graduate Management Admission Test (“GMAT”); the average work experience of Fox’s PMBA students; and the percentage of Fox students who were enrolled part-time, all because it was believed that better numbers for these metrics would result in better rankings for the programs.”

The scheme to goose the school’s rankings evidently worked, too. The U.S. Attorney statement explains: “Relying on the false information it had received from Fox, U.S. News ranked Fox’s OMBA program Number One in the country four years in a row (2015 – 2018). U.S. News also moved Fox’s PMBA program up its rankings from No. 53 in 2014 to No. 20 in 2015, to No. 16 in 2016, and to No. 7 in 2017.” Porat then touted the rankings in “marketing materials directed at potential Fox students and donors,” and “[e]nrollment in Fox’s OMBA and PMBA programs grew dramatically in a few short years, which led to millions of dollars a year in increased tuition revenues.”

The “rankings” established by publications like U.S. News and World Report have had a profound–and in my view, negative–impact on the world of higher education. Parents and students use them to help in making application decisions, and schools reorient their admissions standards and processes and make other important decisions in an endless quest to better their rankings. The notion that you can boil down the whole college experience, or a law school education, to a ranking based on metrics is absurd on its face, but the rankings give schools something to boast about, or goals to achieve. Never mind the distorting and pernicious effect the zeal for higher rankings might have on a school’s educational mission–or the fact that the rankings have become such a dominant force that they caused one school administrator to apparently engaged in fraudulent conduct.

We’re past the point where our kids are making school decisions, but this incident really makes you wonder how meaningful those rankings really are.

Kinks In The Supply Chain

We’ve been reading a lot about supply chain issues. Yesterday I had my first direct experience with the problem when I went to do grocery shopping for my holiday baking–as reflected in the above photo of yellow sprinkles and cream cheese.

Normally, I would buy Philadelphia Cream Cheese for my baking. It’s the brand that we had in the house when I was a kid, and I figure if it was good enough for Mom, it’s good enough for me. But yesterday our grocer had no original Philadelphia Cream Cheese. Instead, in the cream cheese cooler there was a little sign explaining that due to supply issues, they didn’t have some of the offerings you would normally find. There was a Philadelphia brand substitute, that promised one-third of the fat of normal cream cheese, but who wants to try a low-fat alternative in a Christmas cookie recipe? So I bought the Yoder’s cream cheese, which was only standard cream cheese that was available, and I am hoping that it measures up to Philadelphia standards.

The same thing was true in the baking aisle. To my surprise, there were no green and red sprinkles available, which are the sprinkles I typically buy for Christmas baking. The only sprinkles available were these yellow sprinkles, and the shelves for most of the other festive toppings, like chocolate sprinkles or tiny balls, were empty, too. So I opted for the yellow sprinkles, figuring yellow sprinkles are better than none at all.

I had similar experiences elsewhere in the store. It’s not like the shelves were barren; there was lots of stuff for sale. But if you were looking for specific things, like a particular brand of cream cheese, or flour, or sprinkles, you might encounter a void, and an explanatory sign, and have to find a substitute. It’s not what we are used to here in the land of plenty.

Of course, I can make do with yellow sprinkles, and a different brand of cream cheese or flour; Christmas cookies are not a life-or-death thing. But the little signs and the shortages made me wonder what else has been affected by the kinks in the supply chain–like necessary parts, or crucial medicines or ingredients for medicines, or other essential items and materials.

The supply chain problems are concerning. Let’s hope they get this issue figured out, and soon, so that we don’t experience some really significant disruptions.

A Spread-Out Shopping Season

“Black Friday” has come and gone, without a lot of the reports of shoppers pummeling each other or trampling security guards in a rush to get the special deals being offered on big-screen TVs or the hottest new toy. That’s because American shopping patterns appear to be changing, again and probably for good, and “Black Friday”–the day after Thanksgiving that had become the traditional madhouse start to the holiday shopping season–is becoming less of a focus.

CNBC is reporting that while shopping on Black Friday increased over last year, when many retailers operated on reduced hours due to COVID, in-store shopping was down 28 percent from 2019’s pre-pandemic levels. There was even a decline in on-line shopping on Black Friday, with retailers ringing up $8.9 billion in sales compared to $9 billion in 2020. And shopping traffic on Thanksgiving itself, when some retailers opened their doors, was down 90.4 percent from 2019 levels.

Analysts cited by CNBC believes that shoppers are spreading out their holiday shopping more than ever before and identified two reasons for the trend and the related drop-off in Black Friday traffic: continuing concerns about COVID and worries about the supply chain. A survey conducted by the National Retail Federation supports the “spread out” hypothesis. It found that 61 percent of American began their holiday shopping before Thanksgiving.

There’s no doubt that some people are still quite worried about the virus, and media reports on supply chain issues and potential shortages have likely had an impact, too, but I think the reason for the shift away from Black Friday madness has two other causes as well. One is earlier than ever holiday-themed commercials and retailer special deals (and holiday programming on outlets like The Hallmark Channel) that have served to remind people that Christmas is coming, and the other is a more fundamental shift in how to shop. During the height of the COVID pandemic shutdowns, even the most hardened in-person shoppers learned that they could basically do all their shopping on-line. When you see a special deal on TV in the weeks before Thanksgiving that you think would make a good gift and your computer is at your elbow, why wait to make your purchase?

I think the new approach might be something like this: start your shopping on your computer before Thanksgiving, take stock of the status of your shopping list when the boxes start hitting your doorstep, and then venture out to the brick-and-mortar stores in the weeks between Thanksgiving and Christmas, when the Black Friday madness has petered out, to fill in the gaps, get the stocking stuffers, and take advantage of any last-minute sales. Whether that scenario is borne out or not, we know one thing: the American consumer is flexible and always willing to try a new approach.

Another Month, Another Variant

The world is up in arms about the latest COVID-19 variant. The new variant, named “Omicron” by the World Health Organization, emerged in South Africa and in only a few days has traveled across the world. Dr. Anthony Fauci says he wouldn’t be surprised if the Omicron variant is already in the United States.

“Omicron” seems like an odd name for a virus, at least to me. It sounds like one of those anonymous planets visited by the Starship Enterprise where one or two guys in red shirts met an untimely death, or the name of one of the Transformers. But there is a rational basis for the choice. The WHO started naming the variants after letters in the Greek alphabet, and “omicron” is the 15th letter. That means we’ve cycled through 13 prior named variants. (The WHO skipped “nu” and “xi,” purportedly because “nu” could be confused with “new” and “xi” is a common last name–which just happens to be the name of the Chinese president). Of the 13 variants, the WHO has designated five as “variants of concern”: alpha, beta, gamma, delta, and omicron.

The emergence of the new variant has produced the by-now-familiar scenes of government officials scrambling to determine their responses, because “Omicron” is seen as having the “potential” to be more resistant to vaccination protection. Some governments, including the U.S., have imposed travel restrictions in an effort to allow time to determine whether the new variant is more transmissible than the “delta” variant that we’ve heard so much about. The U.S. has restricted entry by non-U.S. citizens traveling from South Africa, Botswana, Zimbabwe, Namibia, Lesotho, Eswatini, Mozambique, and Malawi. Other countries have gone farther; Israel, for example, has closed its borders to all foreign travelers.

Brace yourself, folks: we may be in for another round of government-mandated restrictions, closures, and mandates. This time, however, the surrounding circumstances are likely to be different: regulators will be dealing with a population that includes a lot of mask-weary, restriction-fatigued people that might not be as willing to comply with new edicts. In addition, the legality of the prior COVID-related orders, such as President Biden’s vaccination mandate, are working their way through our court systems, and some state courts have struck down such orders on state constitutional grounds. The legal challenges and prior court rulings are likely to complicate the issuance of new, sweeping mandates by federal, state, and local governments.

So now we’ve got “Omicron” to deal with. In case you’re interested, the upcoming letters in the Greek alphabet that could become the names of newly emerging COVID variants are pi, rho, and sigma. I guess we should all be grateful that the “pi” variant didn’t show up before Thanksgiving, our greatest pie holiday.

The Year Of The UFO

Some people have dubbed 2021 “The Year Of The UFO.” A Forbes article published this week recounts some of the UFO-related event that have occurred this year. They include a spike in UFO sightings, as well as the release of UFO-related reports and documents by the Central Intelligence Agency and the Office of the Director of National Intelligence. Forbes summarizes the latter report as addressing “144 UFO sightings by Navy pilots since 2004, with intelligence officials unable to explain 143 of the sightings, but concluding they are likely real objects that could pose a threat to national security.”

The most recent milestone in “The Year Of The UFO” came just a few days ago, when the Pentagon issued a press release announcing the creation of a new program called the Airborne Object Identification and Management Synchronization Group. The AOIMSG will collect and review reports of UFOs in special use airspace, like the areas around military bases, to “assess and mitigate any associated threats to safety of flight and national security.” The new initiative suggests that the U.S. military is taking the issue of UFOs seriously–which is quite a difference from the days when UFO sightings were routinely dismissed as reflections from “swamp gas” or other figments of overactive imaginations.

Of course, UFOs don’t necessarily mean we’ve been visited by technologically advanced extraterrestrial beings. But if other life out there wanted to visit Earth, it’s worth noting that our little planet wouldn’t be especially hard to find–as an interesting article published earlier this year points out. An Austrian astrophysicist considered whether other nearby star systems would be in a position to see our planet transiting the Sun, which is one of the techniques that our scientists currently use to identify planets in other star systems. She concluded that hundreds of star systems could have used that method to spot Earth since the dawn of recorded human history, and hundreds more could do so in the future.

Who knows? If there is life in those other star systems, maybe they’ve decided to pay us a visit. Let’s face it: as weird as 2021 has been, nothing is beyond the realm of possibility.

Happy Thanksgiving!

Happy Thanksgiving to everyone! I’m a big believer in specifically identifying at least some of the many things I’ve got to be thankful for, and then reflecting on them when Thanksgiving Day rolls around. Here’s this year’s list:

  • I’m thankful that I and the other members of my family made it through the last, star-crossed year in good health.
  • I’m thankful for the family, friends, colleagues, and clients who have added color and dash and interest to every one of the 365 days that have passed since last Thanksgiving.
  • I’m thankful that I have happy memories of Thanksgiving days gone by that I can recall with pleasure, like the little wax turkey candles (like the ones shown above) that Mom put out on the dinner table when we sat down for our big meal.
  • I’m thankful that, this year, our extended family will be able to get together to celebrate Thanksgiving as families ought to do, after skipping last year due to the COVID pandemic.
  • I’m thankful for the fact that the apparent supply chain problems won’t keep us from enjoying turkey, mashed potatoes, stuffing, and a slice or two of pie today.
  • I’m thankful for living in a free country where my friends and I can agree to disagree, even about crucially important things like appropriate Thanksgiving pies.
  • I’m thankful for the people who laughed at my jokes, for those who gave me the benefit of the doubt from time to time, and for the kind words, the compliments, the encouragement, and the attaboys that helped me make it through every day.
  • I’m thankful for the people who take a few moments from their day to read my random thoughts on this blog, post likes, and leave comments.

Happy Thanksgiving, folks!

Cherry Pie (And Other Odd Family Thanksgiving Traditions)

Yesterday at lunch, the Bus-Riding Conservative, JV and I got to talking about the Thanksgiving family meals we enjoyed as a kid. Thanksgiving is one of the most tradition-bound celebrations in the pantheon of American holidays, and you could tell that everyone participating in the conversation was enjoying their memories about their particular Thanksgiving family food rituals.

Until, that is, both the BRC and JV shocked me by saying that it was traditional for them to have cherry pie as part of the Thanksgiving meal. That really stopped me cold. Pumpkin pie? Obviously! Pecan pie? Of course! Apple pie, or mincemeat pie? A bit on the edge perhaps, but . . . acceptable. But cherry pie? Cherry? Shouldn’t the only red fruit served on Thanksgiving be cranberry?

Then I realized that I was being unfair and improperly judgmental. The strength of America lies in our diversity, and our willingness to embrace and value differences–even if it involves something as basic and beloved as Thanksgiving dinner. I don’t particularly care for cherry pie. In fact, I find it rather cloying and would never voluntarily order it. But I’ll defend to the death some family’s right to install it as a treasured Thanksgiving family tradition. And upon reflection, I’m sure that some of our family traditions, like the cranberry relish plopped out directly from the can so that it can be sliced with a knife with only a sprig of parsley as a garnish, might strike others as a bit odd.

So let those special Thanksgiving traditions run free! Jello molds with embedded grapes? Hell, yes! Tofurkey? Why not! Squid on a stick for an appetizer to go with the early football game? It’s just another thing to be thankful for.

A Song Selector’s Promise Of The Future

When I was a kid growing up in Akron, I really liked going to Bob’s Big Boy. Grandma and Grandpa Neal used to take UJ and me there for lunch. I was a roly-poly kid who enjoyed a good cheeseburger, so I identified with the statue of the jolly, tubby boy in checkered overalls with lacquered hair who obviously was overjoyed to be holding a cheeseburger.

The statue was great, and so were the cheeseburgers and french fries and Cokes, but what I liked most about the Big Boy was that it had those tabletop song selectors at every table. They were just about the coolest, most futuristic thing ever. The song selectors were highly polished, gleaming metal, like all futuristic objects such as rocket ships were supposed to be. You could use a dial to flip the pages of available songs back and forth–which was fun in and of itself–to find a song you liked, read the selection code, and punch in the number right at your table. Your song then played on the big jukebox in the corner, which meant everyone in the whole place was hearing your song. My favorite choice was Nat King Cole’s rendition of The Lazy, Hazy, Crazy Days of Summer.

In those days, the tabletop song selector seemed like extremely impressive technology, as mysterious in its inner workings as TV sets with their rabbit ear antennas and transistor radios that somehow pulled images and music out of the very air around us. But that was all to be expected, because we were on a relentless march into the future, and the future was going to be a wondrous place, just like the New York World’s Fair and the Disneyland World of Tomorrow ride promised.

Now, almost 60 years later, the future that has come to be is a pretty wondrous place in some respects, when you reflect on it. I’m listening to music that I’ve selected using an app on a phone that also serves as a camera, calendar, newspaper, library, mailbox, and message sender, among countless other functions, and fits easily in my pocket, to be carried anywhere and everywhere. I’m typing this entry into a laptop computer that will transmit my musings into the ether, where they will be published for anyone in the whole world to see. I’m pretty sure the little kid who marveled at the song selector at Bob’s Big Boy would marvel at those devices, too–but of course we tend to grow out of our sense of wonder, and eventually take these things for granted. That doesn’t make them any less amazing.

Thinking about this, I’m glad my laptop has a gleaming metal finish, because my youthful self would have expected that of such a futuristic item. And the next time I buy a cell phone I might check to see whether they’ve got an aluminum case, too.

Austin International, 5:09 a.m. Central

We have an early flight out of Austin this morning. We got here early, and thank goodness for that: the airport is jammed with travelers and a bit of a madhouse. The regular security line snaked along for hundreds of yards, filled with anxious people worried about catching their flights. It was the greatest advertisement for getting TSA precheck status you could imagine.

It’s officially Thanksgiving week, folks, and the packed airport proves it. If you’re traveling don’t take chances—get there early!

The Hill Country Building Boom

On Friday we drove from Austin out into the Texas “hill country” and traveled around towns with evocative names like “Dripping Springs” and “Driftwood.” For decades, such places were part of the wide open spaces to be found in this area, with a rolling landscape dotted with small trees, mule deer, and roadrunners.

That is true no longer. Now the area is home to housing development after housing development, with many other new housing developments visible on the horizon. We drove through some of them, and were amazed at the size of the developments and the number of houses being built. There were houses in every phase of development, from cleared land being staked off to homes in the framing stage to homes where workers were putting on finishing touches and landscapers were getting the lots ready for a for sale sign. And all of the activity was right next to completed homes where families had just moved in. I’m surprised we didn’t see any moving vans.

According to the 2020 census, Texas added more population from 2010 to 2020 than any other state in the country, assimilating almost four million people. The Austin area has gotten its fair share of the newcomers, and people who live around here have gotten used to seeing cars with license plates from other states. And the accompanying development isn’t limited to the cities, as our road trip to the hill country demonstrated: the Texas countryside is being transformed, too. Given the frantic pace of the development, areas like the hill country that are near the growing cities will look a lot different in three or four years than it does right now. The traffic patterns are bound to change, too.

When you decide to go deep in the heart of Texas a few years from now, expect to see a lot more houses, and the stars at night might not look quite as big and bright with all the house lights on the horizon.

A Tipping Point

Yesterday we went to a restaurant. When we sat down after finding our way to a table on our own (“Sit anywhere you like,” the hostess helpfully said) we were confronted by this increasingly familiar QR code item on the tabletop. I’ve been in restaurants before where you use the scanning feature of your cellphone to connect in order to call up the menu.

But this scanning feature was more extensive. You not only called up the menu, you placed your order yourself–hitting a “send to kitchen” button when you were done–and then proceeded to pay for the order, entering in our credit card information on the key buttons of our phone. But when I got to the “tipping point,” where I would put in a gratuity for our waitress, I was stumped.

What is the proper tip amount under these circumstances? By the time I was entering the tip amount, our waitress had literally done nothing; the whole process had been entirely self-serve. By tipping at the outset, there was no connection whatsoever between wait staff performance and the tip, to say nothing of the fact that many of the traditional wait staff duties–providing menus, offering helpful information about what was good, presenting the bill and receiving payment–were being done electronically. We didn’t really interact with our waitress until she brought the food.

I still gave the waitress a good tip, because I appreciate anybody who is working under these circumstances, but not as much of a tip as I would under normal circumstances, when the waitress would offer the full array of services and I wouldn’t have to do 80 percent of the work. Is there a new normal for tipping under these circumstances?

White Paint, Squared

Scientists at Purdue University have created the whitest white paint ever made–a paint so white it has been recognized by the Guinness Book of World Records as the whitest paint in history. (Who would have thought there was even such a category?)

This isn’t of interest to only those people who like to go to paint stores to get those little paint squares and then debate whether their ceilings should be painted in eggshell, or pearl, or alabaster. The whole point of the whitest paint invention process was to try to develop a paint that could actually conserve energy, and thereby address climate change, by making a paint that is as reflective of sunlight as possible. As scientists worked on the problem, they discovered that sunlight reflection and dazzling whiteness went hand in hand.

The new paint is much more reflective than commercially available white paint–bouncing back 98.1 percent of solar radiation–and it also emits infrared heat. As a result, a surface coated with the paint, such as a roof, or the walls of a house, becomes cooler than the surrounding temperature. Using the paint therefore could help to cool buildings and reduce the need for air conditioners and their power consumption, which could relieve the pressure on the nation’s already taxed power grid and the environmental effects associated with generation of electric power.

It’s a pretty ingenious, and painless, way of conserving energy. And who knew? It turns out that inventing a brilliant new white paint is a lot more exciting than watching paint dry.

The Job Hoppers

In 1977, Johnny Paycheck released Take This Job And Shove It, a country tune about a factory worker who quit his job after his woman left him. The song struck a chord in those of us who were working at the time and became a kind of popular anthem about worker dissatisfaction and boldly telling off the boss as you walked out on your old job.

Recently, many workers apparently have taken Johnny Paycheck’s lyrics to heart, because Americans are leaving their jobs in record numbers. According to the Bureau of Labor Statistics, in September 2021 the “quit rate” among American workers hit a new high of 3 percent. In the leisure and hospitality sector of the economy, the quit rate in September was 6.4 percent. In all, more than 20 million workers quit their jobs between May and September, 2021.

Experts are trying to determine what’s causing the increase in quitting, and employers are trying to figure out how long it will last–and what they need to do to attract new workers to fill the vacancies. Some experts think that the COVID pandemic is a factor, with workers leaving because of concerns about contracting the virus (or, alternatively, unvaccinated workers quitting in the face of vaccination requirements)–but the quit rate has been steadily increasing for the past decade, since long before the pandemic hit.

It seems pretty clear that a combination of factors are at play, such as better information about available jobs, a financial cushion created by stimulus payments that allows disgruntled workers to quit and look for another job without starving, remote work options that have opened up jobs for faraway employers, and a general perception that there is a strong job market and finding a new, better job is not going to be difficult. The latter point is important: one reason for the decade-long growth in the quit rate is that the rate hit historic lows during the Great Recession, when workers held on to their jobs with both hands. It’s therefore not surprising that the current rate is a lot higher than it was in 2009.

In the American economy, there’s always going to be movement among jobs. Economists speak of “entry-level” jobs for a reason: people enter the workforce, take a low-paying job, and then start looking for a better one. Employees have never been shy about looking for a better position that allows them to move up the ladder, find a fulfilling career, and live a happy life. And people who are chronic “grass is always greener” job-hoppers early in their working lives often settle in to long-term positions when they create families and assume family-related obligations.

The big issue now seems to be whether there is an attitudinal shift among workers, making them more likely to be dissatisfied and quit. And employers wonder whether these elusive workers are focused on benefits, or work conditions, or home-life balance, or concerns about individual well-being, or just the issues involved in having a boss, period. When you’re trying to fill holes in your workforce and build a corps of employees that doesn’t have constant turnover, these are crucial questions–and right now, the answers aren’t clear.

The Upward Downward Spiral

The Labor Department reported earlier this week that the Consumer Price Index–which attempts to quantify prices of a broad swaths of goods and services in the American economy–increased 0.9 percent in October, resulting a 6.2 percent increase in the CPI since last year. That’s the highest annual increase in the CPI in more than 30 years, since December 1990. And the CPI increase measured in some metropolitan areas was even worse: the Atlanta Journal-Constitution reported, for example, that the CPI increase in that area was 7.9 percent, the highest increase in any city in the country.

It’s pretty clear that inflation is back as an area of significant economic concern. Just hearing that word sends a shudder of dread through those of us who lived through the high inflation period of the ’70s and early ’80s and the belt-tightening days when the Federal Reserve took draconian steps to halt the inflationary spiral and wring the constant price increases out of the economy.

The big question right now is just how persistent the inflationary spiral will be. The Federal Reserve says we’re in the midst of “transitory” price increases, but the most recent CPI data has increased market skepticism of that rosy outlook. The data showed price increases pretty much across the board, and not limited to more volatile areas that can react to temporary shortages, like fuel and food. Even if food and fuel prices are stripped out of the analysis, leaving only “core CPI” to be considered, prices are rising at a 4.6 percent annual clip, which is the highest “core CPI” rate since August 1991.

Even worse, the Labor Department reported that the CPI surge meant that real wages, after inflation, fell 0.5 percent from September to October. That’s a familiar scenario for those of us who lived through the country’s last big inflationary period, in which wage hikes and salary increases never quite seemed to catch up with the CPI. In those days, the upward spiral in prices put many people into a downward spiral in terms of their personal finances and debt situation and really hurt seniors and others living on fixed incomes.

Perhaps the Fed and Treasury officials who reassuringly contend that the inflation spike is temporary will turn out to be right–but what we’ve been reading about “supply chain” seems calculated to feed into more price increases, not less, and shortages that the law of supply and demand dictates will produce higher price tags as we head into the holidays. We need to do something about inflationary pressures and fix the supply chain problems before we find ourselves trapped in another upward-downward spiral.

Better Late Than Never

Every once in a while you read a news story that really surprises you, because it addresses something that you would have bet had been resolved long ago. I had that reaction when I read about the Federal Reserve Board’s recent decision to ban ownership of individual stocks and restrict trading activity by senior Fed officials.

The Federal Reserve, as the nation’s central bank, often takes action that can affect the securities markets–whether it includes decisions about interest rates, tightening or loosening the money supply, or buying or selling bonds to try to ensure market liquidity or shore up the balance sheets of large financial institutions. Anyone who follows the financial markets knows that daily market movements, up and down, are often attributed to reactions to what the Federal Reserve has done, or said. You would be hard pressed to find any federal agency that has a more direct effect on the financial markets.

The Fed found itself caught in a controversy recently when the news media reported that certain Fed officials were buying and selling stocks while the Fed was taking aggressive action to respond to the financial fallout from the COVID-19 pandemic. Two Fed regional presidents resigned after their trading practices during the pandemic were disclosed.

Under the new rules, senior Fed officials will not be able to own individual stocks, bonds, agency securities, or derivative contracts and will be restricted to holding interests in mutual funds, which they will have to sold for a year. (Mutual funds are viewed as more diversified assets and therefore are less likely to be directly responsive to potential actions taken by the Fed.) And no trading of any kind will be permitted during times of “heightened financial market stress.”

Given all of the regulations that are imposed on every facet of American life, it’s surprising that the restrictions announced by the Fed didn’t exist already. The new rules should remove any temptation or concern about self-interested decisions, but it is also interesting that the rules are self-imposed. It might not be a bad idea for Congress to take a deeper look at the issue, and consider whether there is a need for laws to regulate the securities ownership and trading activities of Federal Reserve officials.