Effective immediately the NY Times reports
Richmond Fed's Jeffrey Lacker is resigning effective immediately over improper disclosure of Fed information.
The headlines read:
- He revealed confidential FOMC information to Medley Global Advisors in 2012
- He deeply regrets revealing FOMC information to Medley.
- The information disclosed was not intentional.
- Conduct was inconsistent with FOMC policy
- He crossed the line in leaking this information.
- He resigns immediately
He is not a voting member on the FOMC.
The leak had to do with economic stimulus package by the Fed. He says that analysts had the news. He confirmed the news.
The Federal Reserve announced QE3 on September 13, 2012. The announced plan was to buy 40B of mortgage backed securities. On December 12, 2012, they announced they would add $45B of longer term Treasuries. Lacker says he spoke to Medley in October 2012.
The announcement of QE3 in 2012, led to a bottoming of the US dollar as the Fed threw everything in an attempt to stimulate the economy. The USDJPY moved above the 100 day MA and stayed above until May 2013. The price went from 78.74 to a high or 103.33.