Top Fed Policy Group Brought Up Leak to Private Newsletter

A leak of potentially market moving information from the Federal Reserve became a topic of conversation in the high-level Fed group that sets monetary policy.


Responding to a Freedom of Information Act request from ProPublica, the Federal Reserve acknowledged that the leak of confidential material to an investor newsletter is referenced in nine pages of transcripts of meetings of the Federal Open Market Committee in late 2012 and early 2013.


As reported earlier, the October 2012 newsletter by the market intelligence firm Medley Global Advisors contained detailed and closely held information about what Fed leaders were thinking and what would be in the minutes of an FOMC meeting the day before they were publicly released.


The leak upset many members of the committee, which sets central bank policies that influence interest rates and credit. The group's deliberations take place in private, but the Fed routinely releases a summary three weeks later.


After the group's September 2012 meeting, then-Chairman Ben Bernanke asked the Fed's general counsel and secretary to find out how details about the session got into the newsletter. Bernanke also asked them to look into other leaks from the September meeting that appeared in a Wall Street Journal story.


Until now, the Fed has not publicly acknowledged anything about the leaks.


In the FOIA request, ProPublica asked for "any and all references in the FOMC transcripts between October 23, 2012 and March 20, 2013 that were made by any FOMC participant (including name) relating to leaks of information" found in the Medley newsletter or Journal.


In its response, the Fed said its staff "reviewed the transcripts of the four FOMC meetings during the timeframe given in your request and located approximately nine pages of responsive information."


The Fed declined to release the material, citing a FOIA exemption for "pre-decisional, deliberative communications" by the committee. Instead, the transcripts will be made public in 2018, according to the board's long-standing policy of waiting five years, the Fed said in its response.


A Fed spokeswoman declined further comment.


Leaks to news media about FOMC deliberations are not unprecedented, but the information is usually widely disseminated. In this case, the newsletter containing the inside information was available only to Medley's private clients, who in theory could have traded on it.


Past leaks have prompted the chairman of the Federal Reserve to call in the inspector general or other outside investigative agencies. The Fed has declined to say what came of the inquiry Bernanke launched or answer other questions submitted by ProPublica.


Read more of reporter Jake Bernstein's coverage of the Federal Reserve.


Courtesy: ProPublica


Inflation falls to Zero, first time in 5 years
With inflation easing and many countries teetering on deflation, industry pushes for rate cuts, while consumers wait for the benefits to be passed on to them
Wholesale price inflation hit a zero level in November, the lowest in about five and half years, on account of decline in prices of food, fuel and manufactured items. The inflation was 7.52% in November 2013. The Wholesale Price Index (WPI) based inflation was at 1.77% in October 2014. As per data released by the government today, the food inflation fell to a nearly three year low of 0.63%. The index for the primary articles group declined by 1.0%.
"Given a subdued economic growth including the industrial output, India Inc is expecting at least 50 basis points cut in the benchmark interest rate at least this time around by the Reserve Bank of India when it takes into account falling inflation and a lower build- up of price rise, an ASSOCHAM survey has pointed out, ahead of the credit policy review on Tuesday," ASSOCHAM said.
"Helped by a sharp reduction in the crude oil prices which have dropped by about 30 per cent in the last six months, retail prices of several essential items of use to the common man like vegetables, cereals, milk and milk products have seen a moderation in inflation. In fact, there are items like vegetables which are selling at lower prices today than six months ago," ASSOCHAM added.
In the category of fuel and power, there was a broad based decline by 5.4%, with furnace oil down 13%, high speed diesel oil down by 10%, aviation turbine fuel down by 8%, petrol down 5% and kerosene down 3%.




3 years ago

Itis only in headlines.But my monthly household expenditure is increased.Corporates and middleman are not passing the benefit to the end consumers.Istrongly recomend RBI not to cut the rates before the benefit is passed on to the endusers.My milk card and mobile bill and vegetable prices and internet rates and electricity and rent etc are increased .Rbi governor rightly said monetary oilicy for economy And not to boost equity markets.

Nagpur Lok Adalat disposes off over 24,000 cases in a single day

The Nagpur District Legal Services Authority conducted the exercise of a day-long national Lok Adalat in Nagpur city


As many as 24,071 cases were settled in a single day, bringing down the number of pending cases in the districts court by 6% during the day-long national Lok Adalat held in Nagpur city.


A criminal dispute pending from 1980 was finally disposed off after 34 years, while several old civil as well as criminal matters were also amicably settled.


A total fine amount of Rs33,45,852 was collected in 8,601 cases disposed off.


Cheque bouncing cases were reduced by 10%, while the motor vehicle accident claim settlements amount reached above Rs3 crore.


The Nagpur District Legal Services Authority, under the aegis of the National Legal Services Authority and Maharashtra State Legal Services Authority conducted the exercise.


A special panel comprising a retired district judge, an orthopaedic surgeon and a retired insurance company official helped settle motor vehicle accidents claims. A total of 31,136 cases were kept for settlement, out of which 24,071 cases were disposed off amicably.



Dr. Rakesh Goyal

3 years ago

This seems to be world record. Disposal rate - 1.2 seconds per case considering 8 hours day. Even if it is 12 hours day - disposal rate is 1.8 seconds per case.

A case study for Industrial Engineers!!!


3 years ago

Most readers would be curious to know exactly how the proceedings took place. As Mr. Sivaraman has said, probably a lot of short cuts were resorted to probably resulting in distress to some innocent persons.

sivaraman anant narayan

3 years ago

How could so many cases be settled in a single day;unless cases were bunched togather and common order passed as,'order as prayed by petitioner' in the absence of a rejoinder by opposing party.

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