Federal Reserve leaks policy information, regularly and predictably timed
A researcher says the Federal Reserve regularly leaks secret information about monetary policy
- The leaks are predictably timed
Claims by University of California Berkeley professor Annette Vissing-Jorgensen
- "The most important and likely channel through which information gets from the Fed to asset markets is informal communication with the media or private financial institutions"
- The leaks -occur frequently, are not necessarily bad
- Fed officials may want to test market reaction to a particular policy move ahead of time, and leaks are one way to do so.