The outgoing deputy chairman of the FED, Richard Clarida, leads to a scandal about the trade ethics of the Fed business through the re -weighting of trades
The outgoing deputy chairman of the FED, Richard Clarida, leads to a scandal about the trade ethics of the Fed business through the re -weighting of trades
Members of the US Federal Reserve Fed are criticized this week after the central bank of the monetary report of the monetary policy session from 14-15. December published. After the update, the outgoing deputy chairwoman of the trade activities of the Federal Reserve rekindled the ethics talks.
Richard Claridas Trades on the test bench
The US Federal Reserve can shake up the markets and that was beginning of this week Seen when the Federal Reserve published the update of the monetary policy session of the last month, which announced the plans of the Fed to increase interest and reduce quantitative loosening (QE). Not long after that, the New York Times (nyt) a new disclosure report Chairman of the Federal Reserve, Richard Clarida.
The NYT author Jeana's Smialek wrote that "corrected disclosures show that the deputy chairman Richard H. Clarida sold a equity fund and then quickly bought it back before a great announcement by the Fed." The reporter added that "Clarida, the outgoing deputy chair of the Federal Reserve, did not initially disclose the extent of a financial transaction that he made in early 2020 when the Fed was preparing to intervene in the middle of the spreading pandemic and to save the markets."
criticized trades carried out by Kaplan and Powell in the past, the former ethics officer of the Obama government describes Claridas Trades as "special"
It is not the first time that members of the US Federal Reserve Handel . Last September the Wall Street Journal (WSJ) Published This revealed that the President of the Dallas Fed, Robert Kaplan, "made several million dollar shares in 2020, according to a form for the disclosure of finances provided by his bank". The controversy pushed out of the USA-Notenbank, jerome Powell, should instruct his employees to initiate an ethical examination of the financial activities of the Fed members.
Smialek's report shows that Claridas shops described as "re -weighting" and Clarida called the discrepancies "unintentional mistakes". Peter Conti-Brown, a Fed historian at the University of Pennsylvania, told Smialek that the problem with the Fed members was "deeply problematic". Norman Eisen, an Obama administration ethics officer, told the NYT reporter that it was "strange".
"The question is justified - to what extent does this represent a new weighting?" Iron continued.
The FED members are examined in detail with regard to the shops that they have taken before the further development of COVID 19-related monetary policy loosening measures. Claridas professions were in particular supposedly agreed before Powell the emergency measures of the Fed for supporting the economy announced. Politicians like Senator Elizabeth Warren (D-Mass.) The supposed business of the FED member have prompted to ask the Securities and Exchange Commission (SEC) to examine the ethical questions.
What do you think that the members of the Federal Reserve are examined and criticized for their stock transactions this week? Let us know your opinion on this topic in the comments below.
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