Another controversy has arisen in the financial sector around the Fed Vice Chair, Richard Clarida, after the minutes of the meeting of the US central bank from 14th to 15th December were released. From the report, it can be concluded that the bank is going to raise rates and reduce QE. And that is bad news for the average American investor.
The ignition to the fire
Apart from this horrendous policy update for rebalancing the trades, the personal scandalous market movement of Clarida himself has come to the limelight. It was noted by a journalist that Clarida sold a stock fund and then bought it back just before a massive announcement. The whole situation reeked of internal trading and scandal. This was back in 2020 during the pandemic. Thus, the eyes of all the finance journalists are set on Clarida now after the whole “rebalancing trades” fiasco. Keeping the sensitive nature of the situation in mind, Clarida will be stepping down from his position. However, it’s merely a forced gesture now. The policy updates are here to stay.
The public’s dissent
Due to such scandals in the finance sector, more and more people are opting for DeFi investments. The whole point of DeFi and decentralization, in general, is to reduce this misuse of power by placing it directly into the hands of the people. The anger among the public has risen, especially due to the fact that big bankers are exploiting the pandemic situation. Moreover, these instances were two of many that have happened in the past.