They can't invest elsewhere in the world, interest rates have a direct effect on currency values and therefore the value of their investments, conflict of interest.
Traders in financial institutions can invest in assets outside their job and likely those traders don't have the financial muscle to move the values of entire sectors the way the fed can.
Again, there is nowhere existing at present that a Fed chairman can invest that is outside his/her influence, nowhere there is no conflict of interest in the current financial system.
The only real solution is some kind of defined fed official only fund as you and I have both suggested. But while this would get rid of conflict of interest it enters into an issue of equality of why should fed officials get guaranteed safe investments when the public at large do not, which is why it's probably never been done.
Traders in financial institutions can invest in assets outside their job and likely those traders don't have the financial muscle to move the values of entire sectors the way the fed can.
Again, there is nowhere existing at present that a Fed chairman can invest that is outside his/her influence, nowhere there is no conflict of interest in the current financial system.
The only real solution is some kind of defined fed official only fund as you and I have both suggested. But while this would get rid of conflict of interest it enters into an issue of equality of why should fed officials get guaranteed safe investments when the public at large do not, which is why it's probably never been done.