Two top policymakers at the Federal Reserve announced Monday that they will step down after coming under fire for securities trades they made last year during the pandemic when the central bank was engaged in a sweeping rescue of financial markets.
Dallas Fed President Rob Kaplan said he will depart as of Oct. 8, several hours after Boston Fed President Eric Rosengren announced he will retire on Sept. 30, citing health reasons. Their departures, which open up two key jobs at the central bank, could have significant policy implications as the Fed deliberates how quickly to remove its extraordinary support for the economy.
Both officials, who sit on the Fed’s interest-rate setting committee, were criticized after revelations that they had bought and sold stocks and real-estate-linked assets in 2020, leading to pledges from both to sell the assets by the end of the month to avoid the appearance of impropriety. The trades sparked calls by some progressive groups for their resignation and a push by Sen. Elizabeth Warren (D‑Mass.) to ban all trading on individual stocks by Fed officials.