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IPFS News Link • Federal Reserve

Outgoing Fed Vice Chair Quietly Covered Up Suspicious Trades Made During...

• https://www.zerohedge.com, by Tyler Durden

Several months have passed since FOMC members Boston Fed President Eric Rosengren and Dallas Fed President Robert Kaplan abandoned their posts following a trading scandal that raised questions about senior Fed officials.

Now, Richard Clarida, who is already on his way out the door at the Fed to make room for Biden appointee Lael Brainard, has become the latest senior Fed official to find his way into the ethics officials' rifle sights.

Because according to the NYTBloomberg and a handful of other reports, Clarida sold at least $1M of shares in a US-traded stock fund in February 2020 before buying a similar amount of the same fund a few days later, on the eve of a major Fed policy announcement that would trigger an 18-month-plus torrid rally in stocks, bonds and other securities.

Notably, while Clarida's purchase was previously disclosed and reported by Bloomberg News back in October, the initial sale of the fund shares wasn't disclosed until last month, when an amended financial-disclosure form was finally filed with the government. Notably, this amended form was filed several weeks after the backlash to Clarida's colleagues' trades had died down.

And apparently, no journalists had even bothered to notice the amended form for weeks, until the NYT reported on it Thursday.

For the record, the new form showed Clarida sold $1M to $5M of the iShares MSCI USA Min Vol Factor exchange-traded fund on Feb. 24, then invested a similar range in the fund on Feb. 27.


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