Richard Clarida, the second highest official at the Federal Reserve, will resign early after new details of his trading activity early in the pandemic were revealed.

His term as vice-chair was to end January 31; he will instead step down January 14.

Why it matters: Questionable trading activity by a handful of top officials undermined the central bank's reputation for ethical behavior.

Catch up quick: In late February 2020, with the markets going haywire as coronavirus arrived in the U.S. — and the Fed beginning its efforts to prop up markets and the economy — Clarida bought stocks.

When the trades were revealed in 2021, the Fed initially explained them as part of routine portfolio rebalancing.
As the New York Times first reported last week, he had also sold the same fund a few days earlier as markets were falling, suggesting the trades were more tactical.