Two regional presidents of the US Federal Reserve have expressed their intent to step down after drawing flak from trading in 2020 amid the COVID-19 pandemic, Bloomberg reported.
Boston Fed Chief Eric Rosengren said he would take early retirement, citing health reasons as he had been qualified for a kidney transplant since June last year. His retirement comes nine months early, with most Fed leaders retiring at 65.
Dallas Fed Chief Robert Kaplan plans to step down on October 8, as he said the recent focus on his financial disclosure risks is becoming a distraction to the Federal Reserve’s work.
A Fed spokesperson in Washington said both regional officers resigned of their own free will without pressure from the Board of Governors after recent disclosures indicated that they traded financial assets amid the pandemic, drawing concerns of potential conflicts of interest.
Fed Chair Jerome Powell earlier said staff would take a look at internal ethics rules, and earlier this month said no one on the Federal Open Market Committee is happy to be in the situation with the concerns raised.
Dallas Fed Vice President Meredith Black has delayed her retirement and will serve as interim president, while Boston Fed First Vice President Kenneth Montgomery will serve as interim president until a successor is appointed.