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    Vice-Chairman of the Federal Reserve Board, Clarida, resigns early after a pandemic trade scrutiny

    Vice-Chairman of the Federal Reserve Board Richard Clarida On Monday, he said he would leave his post in the face of exposure to trading equity funds with only a few weeks left.

    In an announcement released Monday afternoon, Clarida said he would resign from his post this Friday. His term expires on January 31st.

    This move followed Clarida’s additional disclosure of the transaction in February 2020, when the Fed was preparing to unfold what it would be in the end. The most aggressive policy tool ever, In an effort to fight the Covid crisis.

    “Rich’s contribution to our monetary policy deliberations and his leadership in the Fed’s first public review of the Fed’s monetary policy framework will have a lasting impact on the central banking arena,” said the Fed. I am. Jerome H. Powell Said in a statement. “I miss his wise advice and important insights.”

    Clarida’s exit occurs in the midst of heightened scrutiny of what he described as a pre-planned portfolio rebalancing on February 27, 2020. However, recent disclosures First reported by The New York TimesShowed three days ago that Clarida sold shares in three stock funds to buy back on the 27th.

    The market fell on February 24, amid concerns that the epidemic of the coronavirus could cause significant economic damage. On February 26, federal policymakers discussed what policy measures could be taken to combat what would eventually become a full-blown pandemic.

    Within a few weeks, the Fed lowered its benchmark interest rates to zero and launched an unprecedented set of lending and liquidity programs to support economic and financial market functioning.

    Clarida’s announcement made no mention of the controversy that was the focus of the controversy. Fed criticism from Senator Elizabeth Warren (D-Massachusetts) and other lawmakers. Two Fed chairs, Eric Rosengren of Boston and Robert Kaplan of Dallas, Both resigned with the following question About their trading activities.

    Clarida called serving the Fed “a clear honor and immeasurable privilege,” and referred to the steps taken during the pandemic.

    “In a few weeks, we are proud to work with our Federal Reserve colleagues as we have implemented historic policy measures that have helped bring the economy out of recession and support a strong economic recovery, along with fiscal policy. I think. Activities and employment since then, “he said in his resignation to President Joe Byden. “There is still a way to walk and there is damage that needs repair.”

    The resignation will take place the same week Powell appears before the Senate Committee for a second confirmation hearing. The hearing will take place on Tuesday. Two days later, Fed Governor Lael Brainard You will face a hearing confirmed as Vice President to seize Clarida’s seat.

    Vice-Chairman of the Federal Reserve Board, Clarida, resigns early after a pandemic trade scrutiny

    Source link Vice-Chairman of the Federal Reserve Board, Clarida, resigns early after a pandemic trade scrutiny

    The post Vice-Chairman of the Federal Reserve Board, Clarida, resigns early after a pandemic trade scrutiny appeared first on Eminetra.

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