Richard H. Clarida, the Federal Reserve's vice chairman, will step down Friday, two weeks earlier than originally planned, amid questions about his trading activity in early 2020.
Mr. Clarida, who has served as the Fed's No. 2 since 2018, sent a letter Monday to President Joe Biden announcing his resignation. His term expires Jan. 31, and Mr. Biden has nominated Lael Brainard, a Fed board member since 2014, to replace him. Ms. Brainard will appear Thursday before the Senate Banking Committee at a nomination hearing.
In October, Mr. Clarida's trading activity came into question when his 2020 financial disclosure showed he had traded between $1 million and $5 million out of a bond fund into stock funds one day before Fed Chairman Jerome Powell issued a statement flagging possible policy action as the pandemic worsened.
He then corrected his 2020 financial disclosure in December noting that he sold between $1 million and $5 million in the same fund three days before buying it. In the amended disclosure, Mr. Clarida said there were "inadvertent errors" in his original disclosure.
Sen. Elizabeth Warren, D-Mass., has requested a Securities and Exchange Commission investigation into Fed officials' trading activity to determine whether any trades violated insider trading rules. Also, in a letter to Mr. Powell Monday, Ms. Warren requested the Fed release "all available information about the trades by Fed officials, and the planned changes to the Fed's ethics practices you announced in response to this scandal."
Then-Dallas Fed President and CEO Robert Kaplan and then-Boston Fed President and CEO Eric S. Rosengren announced in September that they would step down shortly after their 2020 financial disclosures showed they had held and traded financial assets while the Fed was actively supporting markets through the pandemic.
In October, the Fed announced new rules prohibiting its policymakers and senior staff from purchasing individual stocks and limiting their trading activity.
Mr. Clarida's resignation letter did not mention his trading activity or his future plans.
Bloomberg contributed to this story.