Fed watchdog warns of foreign threats to economic data

Investing.com -- The Federal Reserve needs stronger protections for sensitive economic information that foreign adversaries are trying to obtain, the central bank's internal watchdog said Thursday.

The Office of Inspector General released a report stating that the Fed's risk management systems are not identifying threats to proprietary data and information. The central bank lacks procedures to identify critical assets and insider risks, according to the watchdog.

The Fed also does not have adequate training or information sharing processes in place, the report found.

The inspector general said the Board's proprietary economic information attracts significant interest from foreign adversaries seeking to undermine U.S. competitiveness and weaken national security. Risks can also come from inside the organization, such as an employee who shares sensitive information with foreign operatives, either knowingly or unknowingly, the report stated.

The watchdog made nine recommendations for how the central bank should protect itself, including methods to define the board's critical assets and assess risks.

The report was released one day after former senior Fed adviser John Harold Rogers, 64, was sentenced to more than three years in prison. Rogers was convicted on Feb. 3 of making false statements to investigators about sharing information on monetary policy. He was acquitted on a charge of conspiracy to commit economic espionage.

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