Fed Staffer Removed Sensitive Files Before Retiring, Inspector General Finds

A Federal Reserve employee transferred potentially sensitive files—including material related to FOMC deliberations—to an unencrypted USB drive and personal email accounts just before retiring in 2024, according to a report from the Fed's inspector general. The security lapse was flagged by the Fed's own systems, but follow-up failed to recover the files. The IG made nine recommendations to tighten information security; the Fed agreed to all of them. No misconduct investigation was opened because records did not clearly show what was taken.