(FiveNation.com)- Two Federal Reserve officials reportedly just resigned after revelations about their stock trades went public. Robert Kaplan, currently the president of the Dallas Fed, said this week that he will step down for his position on October 8.
His intention, he said, is to avoid being a “distraction” for the overall mission of the Fed.
His announcement was followed by Eric Rosengren, the president of Boston’s Federal Reserve Bank, also announcing that he would step down – but he claims it’s because of health reasons.
A report by The Associated Press, however, reveals circumstances that could suggest these retirements are not as innocent as the two men claim. AP reported that both Kaplan and Rosengren may have profited from their stock trades off the back of inside knowledge of action taken by the Fed. It came as the bank spent trillions of dollars trying to keep the economy afloat during the covid-19 PANDEMIC.
The report confirms that the trades were totally permitted under Federal Reserve rules, but they have left people asking questions about whether they would have been so profitable if the men didn’t have inside knowledge of the bank’s plans.
While technically allowed, the questions are certainly a distraction for the bank overall, and Federal Reserve policy strongly discourages its officials from taking any action that may even present the appearance of a conflict of interest.
That could explain the resignations.
Kaplan made large investments in big companies that were impacted by the pandemic, including Delta Air Lines and Amazon.