Fed 'Hawk' Kaplan Decides to Sell Stocks Amid Conflict of Interest Controversy

Robert Kaplan, President of the Dallas Fed
[Photo by Reuters]

[Asia Economy New York=Correspondent Baek Jong-min] Robert Kaplan, president of the Federal Reserve Bank of Dallas and a prominent 'hawk' within the U.S. Federal Reserve (Fed), has decided to sell all of his stock holdings. This move comes after public criticism that it was inappropriate for Fed officials to engage in large-scale stock transactions while the Fed was implementing economic stimulus measures during the COVID-19 pandemic.

According to CNBC on the 9th (local time), President Kaplan announced in a statement that he will sell all his stocks and purchase passive funds that track market returns.

He stated, "Although I complied with Fed ethics rules during stock trading, I will sell all holdings due to the potential for conflicts of interest."

Over the past year, President Kaplan traded stocks worth millions of dollars in companies such as Apple, Google, Amazon, and Delta Air Lines. Prior to becoming president of the Dallas Fed, he worked at the investment bank Goldman Sachs.

Kaplan's decision came after The Wall Street Journal (WSJ) disclosed the stock trading records of U.S. regional Fed presidents since last year.

The fact that most regional Fed presidents did not engage in stock trading contrasted sharply with Kaplan's case, fueling public criticism. The controversy was further intensified by his reputation as a 'hawk' opposing economic stimulus.

Eric Rosengren, president of the Boston Fed, also announced on the same day that he will sell all of his stock holdings.

This content was produced with the assistance of AI translation services.