Economics
Fed Watchdog Clears Powell and Clarida in Trading Scandal Probe
- IG finds Powell financial advisor traded during Fed blackout
- Probes into Kaplan and Rosengren still ongoing, IG says
Richard Clarida
Photographer: Sarah Silbiger/BloombergThis article is for subscribers only.
The Federal Reserve’s Inspector General said Chair Jerome Powell and former Vice Chair Richard Clarida’s trading activity had not broken any laws or rules, but the probe into the former heads of the Dallas and Boston regional Fed banks remained open.
“We did not find evidence to substantiate the allegations that former Vice Chair Clarida or you violated laws, rules, regulations, or policies related to trading activities as investigated by our office,” Inspector General Mark Bialek said in a letter to Powell dated July 11 and published Thursday. “The investigation of senior Reserve Bank officials is ongoing.”