Federal Reserve Vice Chair to Resign Earlier than Expected Following Fraud Allegations

Federal Reserve Vice Chairman Richard Clarida announced Monday he will step down from his position two weeks earlier than expected after failing to disclose details of some 2020 financial transactions. 

The central bank announced that Clarida, whose four-year term was set to expire on January 31st, will instead step down on the 14th, the Daily Caller reports

Clarida amended financial disclosures regarding previous trades where he sold stock at the beginning of the pandemic. 

He faced backlash after reports surfaced showing him making investments in February 2020, just one day before Federal Reserve Chairman Jerome Powell announced that the bank was ready to use stimulus to help the economy. 

Clarida’s amended disclosures show that he sold shares of the same fund in which he invested after the market plummeted at the beginning of the pandemic. 

“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,” Powell said in the Fed’s announcement Monday. “I will miss his wise counsel and vital insight.”