Fed Official’s Shady Stock Deal

“Mr. Clarida previously came under fire for buying shares on Feb. 27 in an investment fund that holds stocks — one day before the Fed chair, Jerome H. Powell, announcedthat the central bank stood ready to help the economy as the pandemic set in. The transaction drew an outcry from lawmakers and watchdog groups because it put Mr. Clarida in a position to benefit as the Fed restored market confidence.”

“Mr. Clarida’s recently amended financial disclosure showed that the vice chair sold that same stock fund on Feb. 24, at a moment when financial markets were plunging amid fears of the virus.”

Remember when Martha Stewart was sent to prison for buying a few hundred shares of stock on a tip she got from a broker?

But now we’ve got a Fed official – one of the guys who makes policy – doing a quick sell and repurchase based on Fed actions. And it’s legal?

Go figure.

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