Federal Reserve Vice Chairman Richard Clarida announces resignation

President Joe Biden and his administration are already dealing with too many issues and scandals to keep track of, but the latest involves a high-level Fed official who suddenly resigned Monday, which came on the heels of investigations into questionable trades he made at the beginning of the COVID-19 pandemic.

According to the Washington Examiner, Federal Reserve Vice Chairman Richard Clarida, a Republican, announced his resignation Monday, adding that it would be official as of Friday, just a few weeks before his term at the Fed was set to expire. 

While nothing has been proven as of yet, Clarida was suspected by many of using insider information to conduct various stock trades at the outset of the pandemic, which seemed to involve information not readily available to the public.

Not surprisingly, in Clarida’s resignation letter to Biden, he didn’t address the controversy that many believe forced his resignation before his term expires at the end of January.

“I am proud to have served with my Federal Reserve colleagues as we, in a matter of weeks, put in place historic policy measures that, in conjunction with fiscal policy, steered the economy away from depression and that have supported a robust recovery in economic activity and employment since,” Clarida wrote.

He added: “There is still road left to walk and damage to be repaired.”

Clarida defended his various stock moves, which happened just days before the Fed made aggressive policy changes in order to put a bandage on what would be a massive economic downturn. Clarida said the stocks he sold on Feb. 24, just two days before Fed officials met to discuss the plans, was part of a planned “portfolio rebalancing.”

He rebought the shares on Feb. 27, with The New York Times breaking that particular tidbit of news at the time.

Notably, Clarida’s exit from the prominent position comes during the same week Fed Chairman Jerome H. Powell will undergo a Senate committee hearing to secure his confirmation for another term, CNBC reported. Many expect the Senate committee to question Powell about Clarida’s surprise exit in the face of controversy.