Thursday, February 5, 2015

Elizabeth Warren Harasses the Fed

Well, well, Elizabeth Warren as a useful tool.

Senator Warren  and Rep. Elijah Cummings (D., Md.) have asked the Federal Reserve for more information on its internal investigation into an alleged leak of sensitive, market-moving information on monetary policy meeting deliberations in 2012.

 Warren  and Cummings said in a letter to the Fed’s General Counsel Scott Alvarez they are seeking “a briefing and additional information” regarding an internal Fed probe of “a leak of market moving information” from the Federal Open Market Committee’s Sept. 2012 meeting. The leak was reported by ProPublica and Bloomberg News late last year.

They say in the letter the Fed has not released any information on the investigation.

Reports WSJ, according to the press reports, the Fed’s investigation involved alleged leaks of sensitive information to market research firm Medley Global Advisors and The Wall Street Journal. The press reports said the leaks involved detailed accounts of the Fed’s September 2012 policy discussion, including hints about possible action at their December gathering. At that meeting, the Fed announced a new policy in which it promised to keep interest rates near zero until unemployment fell below 6.5%, as long as inflation was forecast to remain in below 2.5% over a one- to two-year horizon.

Exposure of Fed crony activities is always welcome.


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