Dallas Fed President Kaplan to retire early on Oct. 8, citing trading disclosure ‘distraction’
Dallas Federal Reserve President Robert Kaplan became the second regional central bank leader to resign Monday, saying he was stepping down early following a recent controversy over stock market trades he made.
Kaplan’s premature retirement is in line with Eric Rosengren of the Boston Fed, who announced earlier that he would also be retiring but did not mention concerns over the investment portfolio activity.
The Federal Reserve approaches a crucial stage in the economic recovery, as it decides on its future course of monetary policies. Kaplan stated that the Federal Reserve is facing a serious problem with the focus placed on Kaplan’s financial disclosures. This could distract from the Federal Reserve’s vital work.
After disclosures by Kaplan that Kaplan had executed large-dollar trades for big-name corporations like Amazon, Apple and Delta Airlines, controversy had erupted over this issue. The trades were first published by the Wall Street Journal.
Following the trade disclosures, Rosengren and Kaplan both stated that they were selling their stock to avoid conflict.
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