Stock Groups

Fed vice chair traded into stocks on eve of Powell pandemic statement- Bloomberg By Reuters

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO: Richard Clarida, Vice Chair of the Federal Reserve, talks by phone at the “Challenges for Monetary policy” conference held in Jackson Hole (Wyoming), U.S.A, on August 23rd 2019. REUTERS/Jonathan Crosby/File photo

(Reuters] – U.S. Federal Reserve vice chair Richard Clarida converted between $1 million to $5 million of a bond funds into stocks one day prior to Chair Jerome Powell’s statement indicating that possible policy measures were being taken in response the the worsening COVID-19 epidemic, Bloomberg News reported Friday.

Clarida’s transactions were detailed in 2020 financial disclosures. These included shifting funds out of a Pimco Bond Fund on February 27, 2020, as well buying the Pimco StocksPlus Fund, and the iShares MSCI USA Mini Vol Factor exchange-traded Fund in identical dollar ranges that same day. https://bloom.bg/3l34cjb

Powell made a statement the next day, February 28, 2020. He stated that coronavirus poses “evolving risks to economic activity.” Powell stated that Fed “closely monitors developments and their impact on the economic outlook.”

According to Reuters, “Vice Chairman Clarida’s 2020 financial disclosure shows transactions that are a pre-planned rebalancing of his accounts. This is similar to a rebalancing he reported in April 2019,” a Fed spokesperson told Reuters.

He stated that the transactions occurred before his participation in Federal Reserve decisions to address the coronavirus’s emergence and not during an outage period. “The spokesperson said that the Board’s ethics officer approved the selection of funds.

Bloomberg’s report came as the Federal Reserve also faced scrutiny over investment trades that they made in 2013. Two other Federal Reserve officials were then subject to investigation and retired on Monday.

Disclaimer Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, futures, indexes or Forex. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. Because prices might not reflect the market, they may be incorrect. This means that prices cannot be considered indicative and are inappropriate for trading. Fusion Media does not accept any liability for trade losses as a result.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]