… Is it a coincidence, by the way, that four officers of the Federal Reserve have been outed for trading stocks and bonds in a pattern that looks an awful lot like front-running the Fed’s own “guidance?” Robert S. Kaplan, head of the Dallas Fed, and Eric Rosengren, head of the Boston Fed announced their “early retirements” last week over stock-trading ethics issues. Fed Vice-chair Richard Clarida’s financial disclosure statement indicated that he dumped millions of dollars in a Pimco bond fund and jammed them into a Pimco stock fund the day before Fed Chair Jerome Powell announced emergency interventions to battle the Covid-19 epidemic in early 2020. Mr. Clarida was involved in deliberations leading to the change in fed policy. And Richmond Fed president Thomas Barkin is under scrutiny for voting to bail out the corporate bond market while sitting on a portfolio of corporate bonds. In his past role as CFO of McKinsey & Co, a global consulting firm, Barkin advised Purdue Pharma L.P. on maximizing sales of its painkiller OxyContin, the infamous scourge of the US opioid epidemic.
h/t Mauser
