Federal Reserve No. 2 official Clarida to resign after stock controversy


Richard Clarida, the vice chairman of the Federal Reserve, said Monday he will resign on Jan. 14, two weeks before his term was set to end on Jan. 31. Clarida, who was tapped for the Fed by President Donald Trump, was not going to be renominated by the Biden administration. Clarida has become embroiled in a controversy involving a stock transaction in 2020 shortly before the central bank took action to prop up the economy. His announcement comes one day before Chairman Jerome Powell testifies to the Senate, a hearing at which he was expected to be asked about Clarida’s investment decisions. Massachusetts Sen. Elizabeth Warren has been especially critical of Fed officials for buying and selling assets during the crisis, accusing them of a conflict of interest. Clarida did not mention the controversy in his resignation letter. Two other senior Fed officials resigned in the fall after disclosures about their investments during the pandemic.

Source: Marketwatch

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