Fed's Kaplan to leave job Oct. 8, citing trading activities

BY Reuters | ECONOMIC | 09/27/21 04:15 PM EDT

(Reuters) - Dallas Federal Reserve Bank President Robert Kaplan on Monday said he will leave his job on Oct. 8 to eliminate any "distraction" to the central bank related to his personal investment activities.

"The recent focus on my financial disclosure risks becoming a distraction to the Federal Reserve's execution of that vital work," Kaplan said in a statement, in which he also said his trading followed the bank's compliance rules and standards.

The announcement came hours after Boston Fed President Eric Rosengren said he would leave his job on Sept. 27, and followed public outcry that the two had traded in securities even as they played key roles in deciding U.S. monetary policy.

(Reporting by Ann Saphir, Editing by Rosalba O'Brien)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.