Ex-Fed adviser charged with helping China manipulate US markets 

​WASHINGTON – Federal prosecutors announced Friday, they have charged John Harold Rogers, a former senior adviser at the Federal Reserve, with conspiring to share sensitive U.S. economic data with individuals linked to China.How did Rogers allegedly pass economic data to China?The backstory:Authorities allege that Rogers, 63, used his position to pass confidential financial information, including details on Federal Open Market Committee (FOMC) deliberations and internal economic reports, to his contacts overseas.Officials say Rogers traveled to China under the pretense of teaching, but in reality, he met with individuals tied to the country’s intelligence services in hotel rooms, where he allegedly shared key U.S. financial insights. In return, he was paid approximately $450,000 in 2023 as a part-time professor at a Chinese university.The Justice Department also claims he violated Federal Reserve policies by emailing trade-secret information to his personal account.Why does this case matter for U.S. national security?Why you should care:Rogers allegedly used his position at the Federal Reserve to provide China with inside knowledge about U.S. economic policy, including upcoming interest rate decisions and federal bond activity. This kind of information is critical because it can influence financial markets—giving China an unfair advantage similar to insider trading. If a country knows in advance that the U.S. will raise or lower interest rates, it can strategically buy or sell U.S. Treasury bonds to maximize profits or minimize losses.By passing along these secrets, Rogers could have helped China manipulate the global financial system to its benefit. For example, if China anticipated a rise in U.S. interest rates, it could offload U.S. bonds before their value dropped, avoiding financial losses. This type of economic espionage could impact U.S. borrowing costs, inflation, and overall financial stability.What charges does Rogers face?What’s next:Rogers has been indicted on two counts: conspiracy to commit economic espionage and making false statements to federal investigators. The espionage charge carries a maximum sentence of 15 years in prison and a $5 million fine, while the false statements charge could result in up to five years behind bars.The Source: This article is based on information from the U.S. Department of Justice, the Federal Reserve Board Office of Inspector General, and official statements from U.S. law enforcement agencies.