Richard Clarida, the vice-chair of the Federal Reserve, is stepping down. His resignation follows last week's amended disclosures that showed he had been more active in financial markets in 2020 than he first divulged. Clarida's departure marks the third recent resignation of a senior Fed official over trading activity. Eric Rosengren and Robert Kaplan, who had headed two regional bank branches, resigned in September.
“The initial Clarida trades were bad enough, but the incomplete reporting is inexcusable,” said David Wessel, director of the Center on Fiscal and Monetary Policy at the Brookings Institution. “This is not good for the Fed, that’s for sure, and it will fuel the criticism from those who have argued for years that Fed officials are an elite bunch who are more comfortable with bankers than the rest of the society," he added. Ethics experts have called on the Fed’s independent government watchdog to expand its investigation into the legality of the trades disclosed by Clarida.
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