Clean hands operation in the US central banking system. The presidents of two regional central banks – those of Boston (Massachusetts) and Dallas (Texas) – both announced their premature departure, Monday, September 27, for having invested in the financial markets in 2020, a year of incredible financial yoyo. Robert Kaplan, President of the Dallas Fed, announced that his resignation would be effective as of October 8. It turned out that this former Goldman Sachs, 64 years old, had made transactions for cumulative amounts of several million dollars. According to his declaration of interests, he has a varied portfolio of assets, of which twenty-seven lines have an individual value of more than $1 million (Apple, Alibaba, General Electric, Chevron, Occidental Petroleum stocks… and some investment funds). investments).
“The Federal Reserve is approaching a critical moment for our economic recovery as it considers the future direction of its monetary policy. Unfortunately, the recent focus on my disclosures of financial interests may disrupt this vital work of the Federal Reserve.Mr. Kaplan said in a statement. For this reason, I have decided to retire as President of the Federal Reserve Bank of Dallas. » Mr. Kaplan had worked for twenty-three years at Goldman Sachs, until 2006, before becoming a professor at Harvard, where he had studied, then boss of the Dallas Fed in 2015.
Boston Fed boss Eric Rosengren, 64, was less direct, since he explains that he is withdrawing for health reasons – he is a candidate for a kidney transplant – early, from September 30 rather than in June 2022 when he reaches the age limit of 65. At the beginning of September, this man who completed his thirty-five-year career at the Boston Fed had decided – like Mr. Kaplan – to liquidate his portfolio, following revealing transactions less than or equal to 50,000 dollars (42,750 euros) each, but which concerned the real estate sector, also carried on a drip by the Fed: “Although my personal savings and investment transactions comply with Federal Reserve ethics rules, I have decided to address even the appearance of any conflict of interest by deciding to sell my securities and invest passivelyhe said.
The Fed has twelve regional banks. Along with the seven members of the Washington Fed’s executive board, the president of the New York institution has permanent voting rights on the monetary policy council, which sets Fed policy, while the other eleven regional banks do not vote. only by rotation, only four positions being allocated to them. However, they participate actively in the debates. Boston Fed Chairman Mr Rosengren did not vote in 2020 but had a significant role in bailouts to the economy and was due to return to the Fed’s Monetary Policy Committee (FOMC) in 2022 The Dallas Fed’s Mr. Kaplan voted in 2020 and was due to return to the FOMC in 2023.
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