Jerome Powell and Richard Clarida, then the vice chair, traded during the spring of 2020 after the pandemic had erupted. The investigation stemmed from revelations last year that several Fed officials had bought and sold stocks, real estate investment funds and other securities during periods of sharp market turmoil. The trades occurred during a time when the senior officials were privy to discussions about Fed decisions that would likely affect those markets. At the same time, the investigation of the presidents of two regional Federal Reserve banks who stepped down after their trading activities came to light remains ongoing. Both Powell and Clarida worked in the financial sector before joining the Fed and have each reported net wealth in the tens of millions of dollars. The Fed also adopted sweeping new rules that sharply limit officials’ trading activities . . .
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