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Here Is The Exchange That Left A Stunned Janet Yellen Looking Like A Deer In Headlights

Tyler Durden's picture


For nearly one year, Wisconsin Rep. Sean Duffy has been Janet Yellen's nemesis over the ongoing  probe into Fed leakage of material inside information via Medley Global and any other undisclosed channels, one which has seen subpoeans be lobbed at the Fed which has been doing everything in its power to stall said probe, and which cost Pedro da Costa his job when he dared to ask questions at a Fed presser that were not precleared by his WSJ "Fed mouthpiece" peers.

Today, during Yellen's appearance before the House Financial Services committee, Duffy finally had enough, and in a heated exchange asked Yellen what on legal authority is the Fed exerting privilege to ignore a Congressional probe into what is clearly a criminal leak, one which has nothing to do with monetary policy and everything to do with the Fed providing material, market moving information to its favorite media and financial outlets.

The exchange highlights are below:

DUFFY: We sent a letter in the Medley investigation, in our oversight of the Fed, asking you for information regarding communication. No compliance. Then we sent you a subpoena in May, you did not comply with that.


We had partial compliance in October. We're now a year after my initial letter. I've asked you for excerpts of the FOMC transcripts in regard to the discussion -- in regard to the internal investigation on Medley. You have not provided those to me. Is it your intent today to promise that I will have those, if not this afternoon, tomorrow?


YELLEN: Well, congressman, I discussed this matter with Chairman Hensarling and indicated we have some concern about providing these transcripts... given their importance in monetary policy.



DUFFY: So let me just...


YELLEN: And I received a note back from Chairman Hensarling last night, quite late, indicating your response to that. And we will consider it and get back to you as soon as we can.


DUFFY: Oh no, no. I don't want you to consider it and I think the chairman would agree with me, that this is a conversation, not about monetary policy. This is not market-moving stuff. This is about the investigation and the conversation of a leak inside of your organization. So this institution is entitled to those documents, wouldn't you agree?


YELLEN: I will get back to you with the formal answer.


DUFFY: No, no, listen.


YELLEN: I believe that we have provided you with all the relevant information.


DUFFY: That's not my question for you Chair Yellen. If I'm not entitled to it, can you give me the privilege that you're going exert that's going to let me know why I'm not entitled to those documents?


YELLEN: I said we received well after the close of business yesterday a letter explaining your reasoning and I will need some time to discuss this matter with my staff.


DUFFY: I don't want -- listen. I sent you a letter a year ago on February 5th. I had to send you a subpoena. You knew that I'm looking for these documents, you knew I was going to ask you about this today. So if you're not going to give me the documents, exert your privilege, tell me your legal authority, why you're not going to provide this to us.

And while a video of the exchange can be watched below...

The end result was this:


... which after just one more push by a few good men in authority, will be the same as another picture very familiar to regular Zero Hedge readers.

We just wonder if there are still a "few good men" left, daring to challenge the head of the Fed on what any other mere mortal would have been in prison for, long ago.

As for the "deer in headlights" look, and why Yellen is so adamantly refusing to comply with subpoenas and provide the US population and Rep. Duffy with the requested information regarding how it was that the Fed leaked critical information to Medley Global's (founded by Richard Medley, former chief political strategist to George Soros) Regina Schleiger, the answer as Yellen explained last May...

... is simple: Yellen herself was the source, only there is no definitive proof... yet, as confirmation that the Chairwoman herself leaked the information in question would be grounds for prison time.

And since we doubt that Janet would chose a legacy of being the first Fed Chairman thrown in jail, even if it is not that far below a legacy of totally mangling the Fed's attempt at renormalizing rates at a time when the entire world was careening into a recession, we expect absolutely no cooperation by the Fed in this ongoing criminal matter.

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Wed, 02/10/2016 - 22:24 | 7168615 Shizzmoney
Shizzmoney's picture

This broad either doesn't give a fuck about the law....or is just fucking dumb.

Wed, 02/10/2016 - 22:25 | 7168619 idea_hamster
idea_hamster's picture

That's her "Fuck -- This isn't Pedro da Costa" look.


Wed, 02/10/2016 - 22:28 | 7168636 J S Bach
J S Bach's picture

"exert your privilege, tell me your legal authority, why you're not going to provide this to us."


Reply running through her E.T. head: "Senator, my privilege is of my bloodline.  You see... I am of the holy chosen tribe and THAT is my legal authority.  Got it?"


Wed, 02/10/2016 - 22:30 | 7168659 macholatte
macholatte's picture

Isn’t it called “Contempt of Congress”?

When are the fucking limp spaghetti spines who sit on those investigative committees going to issue some arrest warrants?  It’s ridiculous!!  

Wed, 02/10/2016 - 22:34 | 7168688 jcaz
jcaz's picture

Sean Duffy- my new hero.

Run for Prez, Sean- you got my vote.

Wed, 02/10/2016 - 22:46 | 7168749 SoilMyselfRotten
SoilMyselfRotten's picture

Charge her with a crime? They cant even get a freakin audit.

Wed, 02/10/2016 - 22:50 | 7168763 Boris Alatovkrap
Boris Alatovkrap's picture

"FOMC"… this is interesting acronymn. F = Federal, M = Market, C = Committee. What hell is "O" for?

Wed, 02/10/2016 - 22:52 | 7168777 FreeShitter
FreeShitter's picture





Wed, 02/10/2016 - 23:33 | 7169002 philipat
philipat's picture

She seems particularly good at painting herself into corners? On this one, she either allows the release of documents which will convict her of a criminal act OR she must fall back on the "Fed is not subject to disclosure of such materials because it is NOT a Federal Agency" excuse. In the present environment, that would go down really well, wouldn't it?

Wed, 02/10/2016 - 23:41 | 7169038 Ms. Erable
Ms. Erable's picture

Sounds like Duffy's looking to extort some campaign contributions. Wake me when Mr. Yellen is arrested for contempt.

Wed, 02/10/2016 - 23:58 | 7169120 Tarzan
Tarzan's picture

Unlike yellen, a deer in headlights will not move while still blind.

raise the rates, I dare you!

Thu, 02/11/2016 - 00:30 | 7169241 Pairadimes
Pairadimes's picture

Her earpiece must have shorted out.

Thu, 02/11/2016 - 01:11 | 7169377 cheka
cheka's picture

she needs to read fedspeak 101.  when want to hide something, stress fed INDEPENDENCE (secrecy) from any/all inquiries

it's for our own good


bonus points for using the preferred nyc media control room adjective - vaunted.....vaunted independence

Thu, 02/11/2016 - 01:18 | 7169402 Government need...
Government needs you to pay taxes's picture

Are there no patriots left?  Fuckin-A. . .

Thu, 02/11/2016 - 01:32 | 7169436 COSMOS
COSMOS's picture

Her first thought was 'Can a goy really talk that way to me ????'

The second thought was 'Can I call him anti-semetic ????'

Thu, 02/11/2016 - 07:06 | 7169882 Anasteus
Anasteus's picture

Exactly, J S Bach! Being a member of the God's chosen tribe you're automatically granted not legal, but directly divine authority. Even if you were an atheist, or Khazar.

Thu, 02/11/2016 - 08:34 | 7170089 Richard Chesler
Richard Chesler's picture

Let it share a cell with Hillary.


Thu, 02/11/2016 - 11:29 | 7170556 Slomotrainwreck
Slomotrainwreck's picture

A Yel-Bill-ery threesome cell would be a hoot. I want to see video's of that.

Thu, 02/11/2016 - 09:17 | 7170094 AlaricBalth
AlaricBalth's picture

Duffy: "...a question for you Chair Yellen. If I'm not entitled to it, can you give me the privilege that you're going exert that's going to let me know why I'm not entitled to those documents?"

Duffy was asking Yellen if she would like to invoke her 5th Amendment right against self incrimination.

Duffy was a prosecutor in Wisconsin and knew what he was asking.

For example: Martin Shkreli called before Congress, invokes Fifth ... "On the advice of counsel, I invoke my Fifth Amendment privilege against self-incrimination, and decline to answer that question," ...

Thu, 02/11/2016 - 09:18 | 7170276 shovelhead
shovelhead's picture


Like de preacher doin dat alter call "Come to Jesus and renounce Satan NOW!"

"Uh, I'll have to get back to you on that."

Thu, 02/11/2016 - 01:33 | 7169437 The9thDoctor
The9thDoctor's picture

The Federal Reserve is above the law.

Thu, 02/11/2016 - 02:53 | 7169605 zhandax
zhandax's picture

No, they just have a Get out of Jail card.

"Contempt of Congress is initiated by a resolution reported from the affected congressional committee which can cite any individual for contempt. The resolution must then be adopted by the House or Senate. If the relevant chamber adopts the contempt resolution recommended by one of its committees, the matter is referred to a U.S. Attorney for prosecution.

They get the same exemption as Cankles and the rest of the lying, piece of shit status quo.

Thu, 02/11/2016 - 04:02 | 7169703 DownWithYogaPants
DownWithYogaPants's picture

And to what party does this Sean Duffy belong to? https://en.wikipedia.org/wiki/Sean_Duffy

This guy is why I will never vote democrat and sometimes vote republican. When practical will vote libertarian.

This is a reason not to follow the government shills that try to get ZH readers not to vote.

Thu, 02/11/2016 - 04:21 | 7169726 Squid-puppets a...
Squid-puppets a-go-go's picture

can we please install some kind of electrified chairs in congress. Ones with smart voice recognition technology that charges 2000 volts whenever it detects that a question has not been remotely answered directly

Thu, 02/11/2016 - 05:18 | 7169777 Four chan
Four chan's picture

she slimmed her way out of that.

Thu, 02/11/2016 - 05:50 | 7169793 OldPhart
OldPhart's picture

I find this shit entertaining these days.  It pisses me off, but I almost chuckle at the questions and answers.

I've only been on a regional board of museums, but the shitwall of bullshit was prevalent even then...and we had nothing to hide!!  We're fuckin' museums!!  (Uh, at the time I was director of finance for LACMA.)

The stupid shit that's in government, at all levels, politically, is just fucking mind blowing.

This is why you see me write crazy shit.  And had the FBI on my doorstep, and had a fuck you conversation with the NSAGUY on MSChat.

Even before I found Zero Hedge, I was always leery of government and it's spawn, the FED.  I never had a clue about money until 2008, I was mostly asleep, or mostly dead.

Thank you, Zero Hedge for helping me to find my way after I woke the fuck up.

The 'Red Pill/Blue Pill" connundrum is still valid.  You can't see what's going on until you wake the fuck up.


Thu, 02/11/2016 - 01:53 | 7169490 Gold Pedant
Gold Pedant's picture

Well, close, kinda. Her positronic brain is running buggy FORTRAN code written by Diebold under contract from Goldman Sachs. She ended up locking up on stage a few months ago and got into a boot loop where she was repeating the same thing over and over again as her speech buffer was waiting for new data. The aging hard disks were clicking and trying to recover for several minutes. She eventually booted, and there are bad sectors all over the place with corrupt data. Just wait till she gets stuck in one of those GOTO HERE infinite loops with her preprogrammed -0.1% interest rates or we get a divide-by-negative-zero error while she contemplates the next rate hike.

^ More convincing than Mr. Yellen's narrative, no?

Thu, 02/11/2016 - 04:04 | 7169706 DownWithYogaPants
DownWithYogaPants's picture

But perhaps we should not complain about her incompetence.  A more "competent" fed chair might feel more compelled to act when we all know every action the fed takes is designed to soak us a little or a lot more.

Thu, 02/11/2016 - 04:46 | 7169753 reinhardt
reinhardt's picture

absolutely hillllllllllarious

Thu, 02/11/2016 - 11:42 | 7170662 Gold Pedant
Gold Pedant's picture

If you like that, I sort of recited some material that I made up when I wrote the bulk of the following article on Bahbwa Wawa several years ago.


(The IP should be in the logs if you want to know a breadcrumb of my true identity!)

Thu, 02/11/2016 - 06:41 | 7169855 Alpo for Granny
Alpo for Granny's picture

Fucking fantastic comment  GP. I green you!

Wed, 02/10/2016 - 23:44 | 7169058 PrezTrump
PrezTrump's picture

The FED is a private institution.  She just didn't want to make new headlines by saying it.

Wed, 02/10/2016 - 23:49 | 7169084 thinkmoretalkless
thinkmoretalkless's picture

Hell, get Judicial Watch on it...those dudes have gotten more documents via freedom of information requests from the pos admin then any of these limp dick committees ever have.

Thu, 02/11/2016 - 01:15 | 7169394 DeadFred
DeadFred's picture

Bosh! She will comply as soon as the kindergartener who did Obama's birth certificate can find enough time to edit the documents. And NO ONE will call her on the glaring falseness of what she hands over.

Thu, 02/11/2016 - 01:36 | 7169446 COSMOS
COSMOS's picture

Is that guy the same one that did the forged papers on Schindler's List??

Wed, 02/10/2016 - 23:37 | 7169016 yogibear
yogibear's picture






LOL, yeah that's what it really means.


Wed, 02/10/2016 - 23:52 | 7169099 The Duke of Skiatook
The Duke of Skiatook's picture

Yogibear, you nailed it.  Fucked Over Middle Class.  

Wed, 02/10/2016 - 23:46 | 7169063 SuperRay
SuperRay's picture

Hillary to Janet: I've got the top bunk

Wed, 02/10/2016 - 23:06 | 7168858 Dame Ednas Possum
Dame Ednas Possum's picture

O = Obfuscate

Wed, 02/10/2016 - 23:06 | 7168861 Joe Sichs Pach
Joe Sichs Pach's picture


EDIT: due to great minds thinking alike

Wed, 02/10/2016 - 23:07 | 7168871 lincolnsteffens
lincolnsteffens's picture

O is for Open. Just not open to you.

Thu, 02/11/2016 - 00:28 | 7169233 Georgiabelle
Georgiabelle's picture

Well, it supposedly stands for 'open', though as Ms. Yellen just demonstrated 'oligarch' might actually be a more accurate choice. 

Thu, 02/11/2016 - 00:39 | 7169270 chiswickcat
chiswickcat's picture

O = Opaque

Thu, 02/11/2016 - 01:08 | 7169346 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

O as in Orchestrated.  Orchestrated markets.

Federal   Orchestrated   Market   Committee.

Conductor-In-Residence:  Janet L. Yellen

Thu, 02/11/2016 - 01:31 | 7169434 Zero Point
Zero Point's picture

The "O" is for "O face".

Thu, 02/11/2016 - 01:36 | 7169447 HopefulCynic
HopefulCynic's picture


Thu, 02/11/2016 - 01:36 | 7169448 HopefulCynic
HopefulCynic's picture


Thu, 02/11/2016 - 03:26 | 7169664 iinthesky
iinthesky's picture

Ironically,  the O of FOMC stands for Open.  Go figure

Thu, 02/11/2016 - 05:02 | 7169766 franzpick
franzpick's picture

FOMC has long been the Federal Open Mouth Committee, now big enough to hold the high-heeled shoe of a woman with a vagenda.

Thu, 02/11/2016 - 07:31 | 7169916 eishund
eishund's picture

zat is a real good subtle one comrade boris

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