Fed Vice Chair Richard Clarida to Step Down Early

Rich Clarida, the Federal Reserve vice chair, resigned two weeks early amid a trading scandal. His resignation follows similar exits by other Fed officials. Clarida's contributions to monetary policy, including allowing inflation to rise to reduce unemployment, are noted. His departure may ease pressure on Jerome Powell, who faces a confirmation hearing for his reappointment. The Fed is now short-staffed, increasing pressure on President Biden to appoint successors. Elizabeth Warren is expected to challenge Powell during the hearing due to the trading issues.

What challenges does the Federal Reserve face following the resignation of multiple governors?

In what ways might Clarida's resignation affect Jerome Powell's confirmation hearing?