August 12, 2022

Fed vice chair resigning abruptly after fraud allegations

Federal Reserve Vice Chairman Richard Clarida revealed on Monday that he will resign from the central bank on Jan. 14, two weeks earlier than expected, after a report that he failed to disclose some 2020 financial transactions.

“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,” Federal Reserve chairman Jerome Powell said in the Fed’s announcement Monday.

“I will miss his wise counsel and vital insight,” he added.

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, the announcement reported.

He also served as chair of the Federal Open Market Committee’s communication subcommittee.

The abrupt move will lead to a new shakeup of leaders at the Fed at a critical time as inflation surges, and many Americans grow frustrated at Biden’s handling of the economy.

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