China Targeted Fed to Build Informant Network and Access Data, Probe Finds
The investigation by Senate Republicans found that the decadelong effort included detaining a Fed economist in China
The Federal Reserve communicates with other central banks, and researchers within the Fed system have worked at foreign central banks and universities.
PHOTO: AL DRAGO/BLOOMBERG NEWS
By Kate O’KeeffeFollow
and Nick TimiraosFollow
Updated July 26, 2022 11:11 am ET
China tried to build a network of informants inside the Federal Reserve system, at one point threatening to imprison a Fed economist during a trip to Shanghai unless he agreed to provide nonpublic economic data, a congressional investigation found.
The investigation by Republican staff members of the Senate’s Committee on Homeland Security and Governmental Affairs found that over a decade Fed employees were offered contracts with Chinese talent recruitment programs, which often include cash payments, and asked to provide information on the U.S. economy, interest rate changes and policies, according to a report of the findings released on Tuesday.
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https://www.wsj.com/articles/china-targeted-fed-to-build-informant-network-access-data-a-probe-says-11658826000