Update (1550ET): Just minutes before the market closed on Monday, the Dallas Fed Bank CEO and President Robert Kaplan announced that he is planning to retire on Oct. 8, 2021.
The decision comes shortly after we sent the following tweet (in jest, we might add).
In a statement, Kaplan said it had been his “great honor” to lead the Dallas Fed for the last six years. But unlike Rosengren who blamed health issues for his decision to retire, Kaplan noted in his statement to the public that his recent trading controversy had created “a distraction to the Federal Reserve’s execution of that vital work.”
It has been my great honor to serve as the President and CEO of the Federal Reserve Bank of Dallas for the past six years and to work with the superbly talented professionals at the Bank who are helping to build a stronger economy for all communities in the Eleventh District and our nation. It also has been a privilege to work with my Federal Reserve System colleagues and serve as a member of the Federal Open Market Committee. The Federal Reserve is approaching a critical point in our economic recovery as it deliberates the future path of monetary policy. Unfortunately, the recent focus on my financial disclosure risks becoming a distraction to the Federal Reserve’s execution of that vital work. For that reason, I have decided to retire as President and CEO of the Federal Reserve Bank of Dallas, effective Friday, October 8, 2021. During my tenure, I have adhered to all Federal Reserve ethical standards and policies. My securities investing activities and disclosures met Bank compliance rules and standards. I am proud of the work we have done at the Dallas Fed during the past six years and am confident that my colleagues will continue to play a vital role in supporting our nation’s economic recovery.
Powell released a separate statement celebrating Kaplan’s career after releasing a separate statement celebrating Rosengren’s career earlier in the day.
We are grateful for Rob’s six years of service as President of the Federal Reserve Bank of Dallas and as a valued colleague in the FOMC. He has been a passionate and forceful public voice on a wide range of issues, including the critical value of early childhood education and literacy. In addition, he strengthened the Bank’s economic research and played a very constructive role in Systemwide management, budget and technology efforts. We wish him well.
Other senior Fed officials released a combined statement.