China espionage and the Fed

Prosecutors say Rogers was a logical target for Chinese espionage, with an important-sounding title at the Fed and a growing affection for China. In 2018, he married a Shanghainese woman whom he met through a Chinese matchmaking service. FBI agents would later find a note on his iPad, dated December 2018 and addressed to “Dear Chinese People,” in which he expressed admiration for China.

“I love your kindness, your generosity, and your humbly hard working, high-achieving society,” the note said. “I love you unconditionally, Shanghai.”

…In one case in 2019, Chinese authorities allegedly held a Fed economist in a hotel room during a trip to Shanghai and threatened to imprison him unless he agreed to provide nonpublic economic data, according to the Senate committee report. Chinese officials allegedly told him they had been monitoring his phones, including conversations about his divorce, and would publicly humiliate him if he didn’t cooperate. The economist reported the incident to Fed officials after being released, the report said.

China’s Foreign Ministry denounced the report, calling it “political disinformation.”

Here is more from the WSJ.  While I do in general have a high opinion of Fed staff, China…I really do not think you can learn very much from these people!  Perhaps they can tell you about the Lucas critique.