Federal Reserve Vice Chairman Richard Clarida resigns amid stock market scandal

Federal Reserve Vice Chairman Richard Clarida said on Monday he would step down on Friday, the third Fed official to step down amid a trade scandal at the central bank.

The announcement follows new revelations regarding Clarida’s trading in an equity fund in February 2020, when the coronavirus threatened to disrupt the global economy and the Fed was discussing extraordinary measures to counter its impact.

The New York Times reported last week that Clarida changed her financial information to show that he sold and then repurchased shares of the equity fund within days that month. The buyout came the day before President Jerome Powell said the Fed was ready to support markets and the economy.

Clarida, who was part of an inner circle of Fed officials close to Powell and known as the “troika”, was due to complete her term at the end of this month. Instead, he will resign about two weeks earlier.

Clarida took office in September 2018 after teaching at Columbia University and working for 12 years for investment fund manager PIMCO.

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