The Fed presidents who faced calls to resign over their controversial stock trading during the pandemic are stepping down

• Boston Fed President Eric Rosengren and Dallas Fed president Robert Kaplan are stepping down.
• Both had been criticized for investments during the pandemic in firms including Apple, Alibaba, and Tesla.
• Last week, Fed Chair Jerome Powell announced a fresh review of the ethics rules surrounding stock trades.

Boston Federal Reserve President Eric Rosengren said on Monday that he is resigning several months early due to health issues, following recent controversy over his stock purchases.

On Monday afternoon, Dallas Fed President Robert Kaplan announced that he would also be resigning in October, citing the "distraction" of his own much-criticized stock trades.

In a letter to Fed Chair Jerome Powell, Rosengren said he would step down effective Thursday to focus on his health.

"While working on the pandemic relief programs for money market mutual funds and small businesses, given the long hours and stress, regrettably my kidney function declined significantly to the point that I qualified for the kidney transplant list," he wrote.

Rosengren, who is 64, said that preparations had been underway for his retirement next year, as Fed presidents are age-limited at 65 in most cases.

His letter did not mention the stock-trading scandal that has roiled the Fed in recent weeks, sparked by disclosures that Rosengren and Dallas Fed President Robert Kaplan had purchased stock in several big-name firms including Apple, Alibaba, and Tesla. That prompted calls by activists and former Fed officials for Rosengren and Kaplan to step down or be fired.

In particular, Rosengren also made active trades in real estate investment trusts, raising eyebrows about past comments he has made about risks to real estate markets.

At a Fed meeting last week, Powell said that "no one [at the Fed] is happy" about the situation and announced a fresh review of the ethics rules surrounding stock trades.

"We understand very well that the trust of the American people is essential for us to effectively carry out our mission, and that's why I directed the Fed to begin a comprehensive review of the ethics rules around permissible financial holdings and activity by Fed officials," said Powell.