Rigged? NYFed Slams Study Showing Alleged Collusion Between Fed, Banks Around FOMC Meetings

by Tyler Durden
ZeroHedge.com
Sun, 03/11/2018

Back in 2015, we detailed a study by researchers at Duke University and the University of California at Berkeley pointing to quantitative evidence that The Fed consistently leaks non-public information about its meetings.

The study, first reported by The Daily Californian, considers historical patterns in stock prices relative to the distribution of non-public Fed information. “The Fed uses ‘informal communication channels’ on even-numbered weeks after FOMC meetings,” the report said, pointing to leaks making it into media stories such as the Wall Street Journal as well as showing up in private financial advice.

To support their claims, researchers point to private advice received by financial investors and news reports that contained non-public information discussed in FOMC meetings.> “The informal communication can steer market expectations by engaging with private forecasters and newsletters that influence market inference of current and future policy,” the report stated, citing the goal of managing market expectations. “Informal communication facilitates learning by the Fed from the financial sector about how the Fed’s assessment of the economy compares to that of the financial sector and about how markets are likely to react to a particular policy decision.”

The Rest…HERE

This entry was posted on Sunday, March 11th, 2018 at 10:41 am and is filed under Conspiracy, Economics, Government Evil, New World Order. You can follow any responses to this entry through the RSS 2.0 feed.