Federal Reserve Bank of Dallas Governor Robert Kaplan said he resigned early after a recent stock market controversy and became the second regional central bank leader to resign on Monday.
Kaplan’s early retirement came after a statement from Boston Fed Chairman Eric Rosengren, who said he would resign, but raised health concerns rather than issues with investment portfolio activity.
“The Federal Reserve is approaching a critical point of economic recovery as it contemplates the future course of monetary policy. Unfortunately, my recent focus on financial disclosure is critical of the Federal Reserve. There is a risk of getting in the way of work. ,” Kaplan said in the statement.
His retirement will be effective from October 8.
Controversy arose, especially when it was revealed that Kaplan had high-value transactions with well-known companies such as Amazon, Apple and Delta. The Wall Street Journal first reported the transaction.
Following the disclosure, both Kaplan and Rosengren said they would sell their shares to avoid the emergence of conflict. Questions were raised as the Federal Reserve made billions of dollars in asset purchases to help the market function and bought corporate bonds from megacap companies, including Apple.
Kaplan claimed he did nothing wrong.
“During my tenure, I have followed all Federal Reserve ethical standards and policies,” he said in a monthly statement. “My securities investment activities and disclosures meet the Bank’s compliance rules and standards.”
Nonetheless, the issue has resonated through the Fed, and officials have pledged to strengthen rules to prevent such potential conflicts from happening again.
“We need to make changes and will do so as a result,” Federal Reserve Board Chairman Jerome Powell said last week. “This will be a thorough and comprehensive review. We will collect all the facts and consider ways to make our rules and standards more stringent.”
Powell vowed that changes would be made.
“Looking at the next few years, meeting this challenge, handling the situation well, and doing what we did, protecting the public interest and the institutions we are in, means a lot to us. I want to know that All part of it.”
Powell was hopeful that Kaplan would succeed Monday and praised his work at the Dallas Fed.
“He has made a passionate and powerful public voice on a range of issues, including the important values of early childhood education and literacy,” he said in a statement.
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