Federal Reserve: No evidence of deliberate leaks from 2012 meeting

Federal Reserve: No evidence of deliberate leaks from 2012 meeting

Federal Reserve has concluded after an investigation that the market-sensitive information that leaked about policy meeting in September 2012 was not deliberate. The leak happened during the tenure of Federal Reserve ex-chairman Ben Bernanke. The probe started in October 2012 and was completed in March 2013. The probe has marked the leak as a ‘careless mistake’.

The report was published in the Wall Street Journal and Medley Global Advisors before the Federal Reserve announced the policy. The Fed probe found that a Wall Street Journal report had conversation with every reserve bank president and most of the members of the Board of Governors. In some cases, the conversations happened multiple times and also included Federal Reserve staff members.

The name of the Wall Street Journal reporter has not been disclosed in the report. The report was published in WSJ under byline of Jon Hilsenrath on September 28, 2012.

The probe panel said in its report, “These disclosures appeared to be unintentional or careless and none of the disclosures involved details of the FOMC policy proposals or actions.”

Rep. Jeb Hensarling of Texas, the head of the House Financial Services Committee told Federal Reserve Chair Janet Yellen that he understood that the internal probe had been dropped at the request of several members of the Federal Reserve's policymaking body. Hensarling is also the head of the House Financial Services Committee.

In response to Hensarling’s statement, Federal Reserve Chair Janet Yellen said, "Let me say that the policymaking committee and I personally take very seriously our responsibility to safeguard confidential information." Yellen added that the Federal Reserve has policies and procedures to follow in case of any leak of confidential information.

Hensarling has not commented on the results of the probe.

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