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US Federal Reserve Vice Chairman Announces Resignation Following Stock Trading Scandal

Published:

Jan 11, 2022 11:05 GMT

Richard Clarida’s 2020 financial statements have raised speculation about possible insider trading.

The Vice Chairman of the United States Federal Reserve Board (Fed), Richard Clarida, has announced that he will resign from his position two weeks before their term expires. The unexpected resignation comes after his recently amended 2020 financial statements sparked speculation about possible insider trading.

“As my statutory term as Governor expires on January 31, 2022, I am writing to inform you that I intend to resign from the Board on January 14, 2022,” Clarida said in a letter addressed to US President Joe Biden. Monday.

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The announcement followed new revelations surrounding Clarida’s operations in a stock fund in February 2020, just before the market disruption due to the spread of the novel coronavirus.

According to a report by The New York Times published last week, Clarida modified her financial statements last December to show that she had sold and then bought back shares of the stock fund. in a matter of days. The official made the sale on February 24 and the purchase on February 27, just a day before President Jerome Powell said the reserve was prepared to support markets and the economy due to the pandemic.

The reports that Clarida had originally submitted they only reported the purchase of the stock fund, which the Fed had described as a simple planned portfolio realignment. However, the rapid movement of sale and purchase of shares cast doubt on that explanation and experts pointed out that the official’s transactions could have brought him benefits.

The recent revelations caught the attention of the US media and lawmakers. Massachusetts State Senator Elizabeth Warren asked the Federal Reserve to provide more information about the operations carried out by senior officials of the entity.

Experts note that the news came at an inopportune time for Powell, who has recently been reelected to his post and may have to deal with uncomfortable questions at a confirmation hearing before the Senate Banking Committee on Tuesday. “The whole history of rebalancing, just collapses to the fact that he sold and then bought, “remarked Simon Johnson, an economist at the Massachusetts Institute of Technology.” If you are President Powell, you don’t want your reconfirmation audience to focus on this. “

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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