U.S. Senator: CCP is Infiltrating Federal Reserve

On July 26th, a senior U.S. Republican senator condemned the Chinese Communist Party (CCP) of infiltrating the Federal Reserve, obtaining classified information, recruiting central bank staffs and detaining an employee of Fed who visited Shanghai.

According to the report, the Fed’s internal investigation identified 13 employees with ties the CCP’s talent recruitment agency, and they are trying to acquire monetary policy information and internal data. They also have requested sensitive information such as three Reserve Bank chiefs’ view on interest rate hikes. The Fed chairman expressed strong concern while assuring senators that Fed staffs who have access to sensitive information are subject to comprehensive background checks. The political censorship of Fed is highly classified and documents supporting its decision will affect financial market when released. The report also cited the transfer of Fed data to Chinese Universities linked to the People’s Bank of China in 2018. In 2019, Communist China’s officers detained a senior Fed staff and copied the person’s contact information for four times in Shanghai.

Senator hopes this report makes Fed aware of the Communist regime’s comprehensive threat to the U.S. monetary policy. He launched the Protect American Innovation Act, which aimed at preventing intellectual property funded by the U.S. taxpayer from being stolen by the CCP’s agents. The Fed chairman said it will seriously take any violations and would not hesitate to refer the matter to law enforcement.