Federal Reserve Vice-Chairman Clarida Submits Resignation After Trading Scandal

© Chris WattieThe Federal Reserve building is pictured in Washington, D.C., U.S., August 22, 2018.
The Federal Reserve building is pictured in Washington, D.C., U.S., August 22, 2018. - Sputnik International, 1920, 10.01.2022
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WASHINGTON (Sputnik) - Federal Reserve Vice-Chairman Richard Clarida said on Monday that he will resign from his post later this week amid a trading scandal that has implicated him and some of the US central bank’s most senior policymakers.
“I am writing to inform you that it is my intention to resign from the Board on January 14, 2022,” Clarida said in a letter to President Joe Biden on Monday.
The Federal Reserve said Clarida had served as Vice-Chairman and member of the central bank's Executive Board since September 17, 2018.
"Rich's contributions to our monetary policy deliberations, and his leadership of the Fed's first-ever public review of our monetary policy framework, will leave a lasting impact in the field of central banking," Federal Reserve Chair Jerome  Powell said in a statement. "I will miss his wise counsel and vital insights."
Clarida’s resignation comes after media reported last year that some senior Federal Reserve officials were involved in financial markets' trading that could be influenced at least indirectly by their policy decisions.
A Federal Reserve probe late last year found none of its officials implicated in the scandal violated the central bank's policies on securities trading or US regulations. Clarida has denied any wrongdoing, but public criticism about  the apparent conflict of interest among the central bank’s top officials has persisted.
A person shops in the meat section of a grocery store on November 11, 2021 in Los Angeles, California. U.S. consumer prices have increased solidly in the past few months on items such as food, rent, cars and other goods as inflation has risen to a level not seen in 30 years. The consumer-price index rose by 6.2 percent in October compared to one year ago.   - Sputnik International, 1920, 01.12.2021
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US media reported that Clarida’s resignation comes two weeks earlier than planned. While the vice-chairman did not give a reason, the reports said he has faced renewed scrutiny about trades he made in 2020 as the Federal Reserve was poised to rescue financial markets.
Last week, US media reported that Clarida had corrected his 2020 financial disclosures in late December. Ethics experts said one of his trades raised questions - he sold a stock fund on February 24 before repurchasing it on February 27, just before Powell announced on February 28 that the Federal Reserve stood ready to help markets and the economy from the emerging coronavirus pandemic.
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