Boston Fed’s Rosengren to Retire Prematurely Due to Health | national
And Dallas Fed Chairman Robert Kaplan completed several million dollar trades in stocks such as Apple, Google and Facebook last year.
Rosengren’s and Kaplan’s investments have been permitted under Fed rules, although they have at least raised the appearance of conflicts of interest, which Fed policy discourages. Powell told a press conference last week that the Fed would change its ethics rules and suggested that a likely change would be to ban Fed officials from holding financial assets that the Fed itself. also buys.
Kaplan is 64, but he’s not likely to take mandatory retirement anytime soon. That’s because the Fed’s rules allow any bank president appointed after the age of 55 to serve up to 10 years before retiring. Kaplan was appointed in 2015 at the age of 58, which means he could serve until 2025.
Boston Fed Senior Vice President Kenneth C. Montgomery will assume the role of Interim CEO. A new president will be chosen by the six Boston Fed board members who are not bankers. Directors who are affiliated with banks are prohibited by law from participating. The research will be led by Christina Paxson, president of Brown University, and the new president will be submitted for approval to the Fed’s board of governors in Washington.
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