Fed vice chair to resign over stock trading controversy
Richard Clarida, the Federal Reserve’s vice chair, announced Monday that he will resign, following more revelations of his stock trading at the beginning of the coronavirus pandemic.
Clarida, whose term as the Fed’s second-in-command was to expire at the end of this month, sent a letter to President Biden on Monday saying he would resign on Jan. 14. He’s the third Fed official in recent months to resign over questionable trades during the pandemic, as the Fed began its tremendous intervention to support the financial system. These trades are now under review by an inspector general, as the officials were in a position to benefit from insider knowledge of economic conditions.
Scrutiny over Clarida’s disclosures began in October after initial reports from Bloomberg News showed that he bought shares in February 2020 of an investment fund that held stocks, just before the Fed announced it was prepared to help the economy as the pandemic began to take hold, bringing confidence to the markets.
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Attention on Clarida’s trades intensified last week after the New York Times reported that Clarida initially failed to disclose the full extent of his trading. Clarida corrected his public disclosures of stock trades in December, showing that he moved money out of a stock fund as the pandemic spread and the markets fell. Then three days later, after the markets plunged, Clarida moved money back into the same fund, just before the Fed announced it was prepared to step in and provide new economic supports to the financial system.
https://www.msn.com/en-us/money/news/fed-vice-chair-to-resign-over-stock-trading-controversy/ar-AASDzfX
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