Fed Board Fired Four Employees and Disciplined Five Others for Sexual Harassment: Report

The Federal Reserve Board fired four staffers and disciplined five others after receiving sexual harassment complaints between 2020 and 2023, according to a report.

The Board – one of the Fed’s three main entities, along with the Federal Open Market Committee and the Federal Reserve Banks – received a total of 11 sexual harassment complaints during that period, according to a document the central bank provided to Reuters last month released.

Between 2020 and 2023, the board of directors issued “last chance” warnings to four staff members for sexual harassment and dismissed another four for sexual harassment “and other employment issues,” according to the list, which Reuters obtained through a request from the Freedom of Information Act. last year.

The Council also announced three other complaints of sexual harassment. In two of these cases, the Board said it took no action because one allegation was “unsupported” and the other was made against a person who was not a Fed employee.

Another employee was “advised regarding unprofessional communications,” according to the list of disciplinary actions taken under the council’s harassment policy. It did not provide any further details.

“Sexual harassment has no place in our society and is prohibited at the Federal Reserve,” a Fed spokesperson told The Post. “We have a zero-tolerance policy that prohibits all forms of harassment, even if the behavior does not violate the law.”

Although federal regulators are required under anti-discrimination law to disclose the number of equal employment opportunity (EEO) harassment complaints against the agency, they are generally not required to disclose disciplinary actions taken against individuals in the absence of such formal complaints, when the reported behavior may not violate the law.

As a result, it is not clear how the Fed data released to Reuters compares to that of other agencies.

The report comes after a disturbing revelation from the Wall Street Journal last year found that the Federal Deposit Insurance Corporation had cultivated a toxic work environment rife with sexual misconduct, bullying and racism.

In May, Martin Gruenberg, head of the agency, announced he would step down from his position once a successor was found.

A blistering law firm report detailed several instances in which Gruenberg lashed out at employees who disagreed with him or had to deliver bad news.

Although more than 500 employees described a toxic work environment in the report, the FDIC disclosed only five EEO complaints between 2020 and 2023.

There are several reasons why sexual harassment complaints may not result in formal EEO complaints, attorneys say.

According to the Equal Employment Opportunity Commission, federal employees must participate in 30 days of counseling, during which EEO counselors can attempt to resolve the problem, before filing a formal complaint.

“I think it’s fair to say that just because the data wasn’t produced doesn’t mean sexual harassment didn’t occur,” said Ariel Solomon, an employment attorney who represents government employees who file sexual harassment complaints. “We are certain that some complaints were so serious that termination was absolutely appropriate.”

After the Journal first reported on the FDIC’s toxic work environment last November, the agency sent emails warning staff that misconduct would not be tolerated.

“Sexual harassment and retaliation have no place on any team,” wrote Marta Chaffee, senior associate director of oversight and regulatory affairs.

With Postal Wires