There is a lot going on in the Federal Reserve, as we now have the 3rd person to resign from the Federal Reserve for a trading scandal. Vice-Chair Richard Clarida is the latest who has been hit with such a problem as she announced Monday that this Friday will be her last day.
New information has come out regarding Clarida’s trading stock fund in February 2020 when Covid first struck the US. In 2021 Clarida Changed his financial disclosures to show he sold and then rebought shares in a stock fund within a matter of days, this is according to The New York Times. Now the Fed said these shady purchases were just portfolio rebalancing, which was undermined when information of the sale came to light.
Although trading while working in the Fed is not illegal it is considered highly unethical because of insider knowledge. This has drawn the ire of many politicians to include Elizabeth Warren criticized the trades and called for a ban on stock ownership by Fed officials.
Investor’s Edge with Gary Kaultbaum can be heard on weekdays on MoneyTalk 1010. Gary Kaltbaum is a registered investment advisor with more than 30 years of experience in the markets. He is the owner and President of Kaltbaum Capital Management, a financial investment advisory firm headquartered in Orlando, Florida. He is a Fox News Channel Business Contributor regularly appearing on Fox News Channel and the Fox Business Network. In addition, Gary is the author of the book “The Investors Edge” and the host of a nationally syndicated radio show with the same title, “Investors Edge,” broadcast on numerous stations across the U.S. The show is also available on-demand and airs live 6-7 pm EST Monday-Friday. You can hear past shows online at garykaltbaum.com.
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