Loading ...Alarms went off inside the Federal Reserve: the Fed’s innermost secrets had leaked to Wall Street.
Confidential deliberations of the Federal Open Market Committee made their way into a research note circulated among traders.
The report — a fly-on-the-wall account of the FOMC’s September 2012 meeting, with hints of Fed action to come that December — prompted a mole hunt that reached the highest levels of the central bank.
The story of the FOMC leak underscores the lengths to which outsiders will go to penetrate the inner workings of the Fed, and how valuable access can be. The Fed has never disclosed the investigation or its findings.
Public pronouncements by Fed leaders routinely move markets, and officials must walk a delicate line when discussing information. They are allowed to air their own views but are forbidden from disclosing non-public information about committee decisions. Read more