Facing questions on trades, Fed vice chair to leave early

NEW YORK: Federal Reserve Vice Chair Richard Clarida announced Monday he will exit the US central bank early following questions over his equity trading activity early in the Covid-19 pandemic.

Clarida, whose term on the Board of Governors was set to expire on January 31, will instead resign on January 14. He gave no explanation for the accelerated departure, but said in a resignation letter he was “proud” to have helped steer “the economy away from depression.”

Clarida faced heightened scrutiny following reports last week that he undertook additional stock fund trades in February 2020 that appeared to contradict earlier explanations about his trading activities.

The latest questions came after amended financial disclosure forms were reported by The New York Times.

Earlier Monday, Senator Elizabeth Warren, a Massachusetts Democrat, had called on Fed Chair Jerome Powell to “immediately release” all information relating to the trades.