Last week a report showed that Fed Vice Chair Richard Clarida had made more trades that weren’t disclosed. That’s put Senator Elizabeth Warren back on the war path ahead of Powell’s confirmation hearing Thursday.
It looks like Clarida is falling on his sword here and will leave January 14 rather than the planned January 31 date. It means he won’t participate in the FOMC meeting this month.
To me, that looks like they found something that’s not above board.
Here’s the statement from the Fed:
Richard H. Clarida announced on
Monday his intention to resign from the Board of Governors of the Federal
Reserve System on January 14, 2022. He has been a member of the Board and Vice
Chair since September 17, 2018.
“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,”
said Chair Jerome H. Powell. “I will miss his wise counsel and vital insights.”
During Dr. Clarida’s time on the Board, he served as chair of
the Board’s Committee on Economic and Monetary Affairs, which oversees the work
of the divisions of Monetary Affairs, Research and Statistics, and
International Finance. He also served as chair of the Federal Open Market
Committee’s communication subcommittee. In that role, he led the 2019 review of
the Federal Reserve’s monetary policy strategy, tools, and communication
practices, and he oversaw the creation of the Fed Listens initiative. Dr. Clarida
has also represented the Board internationally, including at the Bank for
International Settlements, the Group of 20, the Group of Seven, the
International Monetary Fund, and the Organisation for Economic Co-operation and
Prior to his appointment to the Board, Dr. Clarida served as the
C. Lowell Harriss Professor of Economics and International Affairs at Columbia
University, where he taught from 1988 to 2018. From 1997 until 2001, Clarida
served as chairman of the Department of Economics at Columbia University. In
addition to his academic experience, Dr. Clarida served as Assistant Secretary
of the U.S. Department of the Treasury for Economic Policy from February 2002
to May 2003, where he was awarded the Treasury Medal in recognition of his
service. He also served on the Council of Economic Advisers under President
Dr. Clarida received a B.S. in economics from the University of
Illinois with Bronze Tablet honors and a M.A. and Ph.D. in economics from
A statement from Clarida makes no mention of why he resigned early: