Confronted by the furor around the stock-trading while making decisions critical to the performance of those stocks, regional Federal Reserve Presidents Eric Rosengren and Robert Kaplan chose the semi-honorable route of early retirement ahead of any Securities and Exchange Commission investigation. Fed Vice Chairman Richard Clarida is, however, true to his pedigree as a Donald Trump appointee, has no intention of taking the same route.
"I've had the opportunity to serve in the Council of Economic Advisers, the Treasury and the Federal Reserve across four administrations, as part of a career in economic policy, academia and the private sector that has spanned nearly 40 years, and I've always acquitted myself honorably and with integrity with respect to the obligations of public service," Fed Vice-Chairman Richard Clarida said during a virtual appearance.
Which I guess means we still have to listen to him, at least until his term expires in January.
"A gradual tapering of our asset purchases that concludes around the middle of next year may soon be warranted," he said in remarks delivered virtually at a conference on Tuesday.
Someone we don’t have to listen to anymore, or at least not as closely, is Clarida’s fellow Trump appointee Randal Quarles, who as of tomorrow is no longer the Fed’s vice chairman for bank supervision. In fact, as of tomorrow, no one is, because Democratic presidents are apparently uninterested in filling a role that they created as part of the Dodd-Frank law.
President Biden hasn’t nominated anyone to succeed Mr. Quarles as vice chairman. A White House official Tuesday said Mr. Biden remains engaged with his senior economic team on coming Fed personnel matters and “will make decisions in a thoughtful matter….”
The succession plan around Mr. Quarles’s post has generated significant interest because of questions over how pending merger applications, bank regulatory issues and related business will be handled. His post was created by the 2010 Dodd-Frank legislation that overhauled financial regulation, and Mr. Quarles was the first person formally nominated to the position.
Clarida Defends Himself Amid Federal Reserve Trading Controversy [WSJ Pro]
US economy almost ready for less stimulus, Fed official says [AFP via Yahoo! News]
Fed’s Bank Supervision Committee Will Have No Chairman After Quarles Term Ends Wednesday [WSJ]
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