Fed Heads Stepping Down Amid Allegations Of Questionable Stock Trades

The President of the Dallas Fed and the President of the Boston Fed have announced their retirements amid growing controversy surrounding their market trades.

Robert Kaplan, head of the Dallas Fed, announced on Monday that he would step down from his position as a result of recent trades writing in a statement, “The Federal Reserve is approaching a critical point in our economic recovery as it deliberates the future path of monetary policy. Unfortunately, the recent focus on my financial disclosure risks is becoming a distraction to the Federal Reserve’s execution of that vital work.”

Kaplan will step down on October 8.

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Questions had risen amid news that Kaplan had executed some large dollar trades in companies including Amazon, Apple and Delta Air Lines. The Wall Street Journal first reported the trades which have come under fire because the Fed, itself, has bought corporate bonds from Apple helping to keep the company liquid. The Fed also helped ease liquidity at large corporations through its asset purchase program, something critics have cited as something that helped these company.

Kaplan said there was nothing wrong with his trades and that “my securities investing activities and disclosures met Bank compliance rules and standards.

Eric Rosengren has also come under fire for similar issues, however Rosengren said he was retiring for health reasons.

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