Richard Clarida, vice president of the US Federal Reserve, is stepping down shortly before the end of his term due to reports of suspicious stock market transactions. He will step down on Friday, the Federal Reserve said Monday. Clarida has been Vice President of the Federal Reserve since late 2018. His term usually ends at the end of January.
Clarida was on fire last year over private stock market activity in 2020 as markets plummeted due to the corona virus epidemic, and the central bank is preparing to make big resources to contain the Govt crisis.
According to a message The New York Times The day before the central bank’s influential decision to intervene in the markets, Clarida bought a stock fund. Thus, the price went up again. Clarida had previously stated that the acquisition was part of a long-term portfolio review. But according to the paper, amid general panic in the markets, he sold the fund three days ago.
Progressive Democratic Senator Elizabeth Warren criticized the central bank on Monday. He demanded on Twitter “full transparency regarding the confusing sources of potential internal trade by federal representatives”.
Many central bank officials have already been criticized for their stock market transactions. Two of them, Dallas and Boston regional leaders Robert Kaplan and Eric Rosenkren, resigned in September.
Following the first revelations, the central bank announced that it was reviewing the ethical rules surrounding the financial activities of its officials.
President Joe Biden had already nominated Loyal Brinard as Clarida’s successor by the end of November. His appointment has not yet been approved by the Senate.