Fed Fails to Comply With Lawmakers’ Request For Names in Probe – Real Time Economics

The Fed did not reply to a Congressional request for names of officials who make have inappropriately shared confidential policy information.
Kevin Wolf/Associated Press

The Federal Reserve has not replied to a lawmakers’ request that it identify the individuals who had contact with a private consulting firm that published a report on the central bank’s market-sensitive internal policy deliberations.

In October 2012, the day before the Fed released its minutes of its September 2012 policy meeting, Medley Global Advisors, sent a report to its clients with several sensitive details that subsequently appeared in the minutes. A central bank probe found  a “few” Fed staffers had contact with Medley before the report, but did not identify them.

Rep. Jeb Hensarling (R., Texas), Chairman of the House Financial Services Committee, sent a letter to Fed Chairwoman Janet Yellen on April 15 asking the Fed to name them by 5 p.m. EDT April 22.

The deadline passed without any response by the Fed, a committee spokesman said Wednesday.

The Fed declined to comment. Medley did not respond to a request for comment.

The central bank’s policy-making Federal Open Market Committee makes decisions on interest rates that can cause huge swings in global financial markets. Confidential information about its internal deliberations or advance information about the minutes of its meetings or possible future actions can be worth huge sums of money to traders around the world.

Related Reading:

Lawmaker Wants Fed to Name Possible Sources of Internal Secrets

Congress Wants More Answers on Possible Fed Leaks 

Fed Probe Into Possible Leak Finds No Major Breaches



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22 April 2015 | 9:44 pm – Source: blogs.wsj.com


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