Fed Reserve co-chairman resigns amid reports of questionable stock fund purchase

Federal Reserve Vice Chair Richard Clarida, the No. 2 at the U.S. central bank, says he will resign Jan. 14, amid reports about a questionable stock fund purchase. 

Clarida made the announcement Monday and is leaving roughly two weeks before the end of his term.

His resignation followed reports that he corrected his previous financial disclosure late last month to show he sold a stock fund, then repurchased it shortly before the Fed announced trillions-of-dollars worth of pandemic rescue programs, according to Reuters. 

President Biden has nominated Fed Governor Lael Brainard to take his spot on the bank’s board.