Bob Doll, CIO of Crossmark Global Investments, speaks about Fed Chairman Jerome Powell’s press conference, inflation concerns and his outlook for markets amid fiscal pressures.
Dallas Fed President Robert Kaplan is set to retire soon, according to a central bank announcement made just hours after news that Boston Fed chief Eric Rosengren was stepping down early for health reasons.
Both regional presidents came under fire after financial disclosures showed everyone had made significant stock deals over the past year, drawing the attention of critics who said rules regarding the assets Fed officials are allowed to hold will be tightened would have to.
Robert Kaplan, President and Chief Executive Officer of the Federal Reserve Bank of Dallas (L) (Photographer: Cooper Neill / Bloomberg via Getty Images); Federal Reserve Chairman Jerome Powell (C) (Susan Walsh / Pool via REUTERS); Boston Fed President Eric R (Cooper Neill / Bloomberg via Getty Images | Susan Walsh / Pool via REUTERS | Photo by Jessica Rinaldi for The Boston Globe via Getty Images)
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“I have been honored to have been President and CEO of the Federal Reserve Bank of Dallas for the past six years and to work with the bank’s brilliantly talented professionals who are helping build a stronger economy for all communities in the Eleventh District and our nation, “Kaplan said in a statement accompanying his departure announcement on October 8th.
He added, “During my tenure, I followed all of the Federal Reserve’s ethical standards and guidelines. My investment activities and disclosures were in accordance with the bank’s compliance rules and standards.”
When announcing Rosengren’s retirement earlier in the day, the Boston Fed said in a statement: “In a message to bank staff, Dr. Rosengren first announced that he qualified for the kidney transplant list in June 2020 during the pandemic, following the worsening of a kidney disease he has had for many years, “and said that” need for dialysis delay could be improved if he did. ” is now changing his lifestyle to reduce the risk of his disease. ”
Rosengren was supposed to retire in nine months, but will now retire on Thursday after 35 years with the Boston Fed. Prior to joining the Dallas Fed, Kaplan was a Senior Associate Dean at Harvard Business School.
While neither Kaplan nor Rosengren broke the rules by which Federal Reserve officials are bound, their deals caught the attention of lawmakers and others who argued that similar deals – such as those involving individual stocks or real estate investment trusts – could constitute a conflict of interest.
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Earlier this month, the Fed announced that Chairman Jerome Powell had ordered a review of the central bank’s ethics policy to see if changes are needed. Within a few days of this announcement. Powell swore that change would definitely come.
“We have to make changes, and we will do so as a result,” Powell told reporters last week about the affairs of Fed officials. “Nobody is happy about it.”
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