Pedro da Costa: "I Tried To Ask Yellen about The Fed Leak"

Tyler Durden's picture

Submitted by Pedro Nicolaci da Costa of Business Insider

I once asked Janet Yellen a rather straightforward question that would echo for much longer than I expected.

It was March 2015, and the Federal Reserve was under pressure from Congress to reveal details about an internal investigation into how key details of its interest rate policy deliberations had made their way into a report by a private sector firm.

I was a reporter at the Wall Street Journal*, and I asked the following at a press conference:

Let's make something clear: Like any journalist, I love a good leak. But this was not your typical leak of important information to a journalist who then reported it to the public.

This was the sharing of private, market-sensitive details with a private party — Medley Global Advisors — which then shared that information with its clients. The leak, it should be noted, happened all the way back in 2012 but it was still being discussed in 2015 because — despite the Fed's internal investigation — nobody seemed to have gotten to the bottom of what had happened.

And back in 2012, any read on what the Federal Reserve might do to suppress interest rates as the US economy continued to crawl out of the Great Recession, could lead to huge profits for the traders who bet on such things. These days, traders are thinking about the next rate hike. Back then, interest rates were already at zero and the real insight gleaned from Medley's report was how aggressively the Fed would work to keep them there by using its balance sheet.

My question to Yellen had to do with basic public trust in the Fed. Why should the American people believe the central bank is working in its best interests if policymakers chat privately with movers and shakers on Wall Street? This was an alarming trend I had been reporting on since 2010, when I co-authored a report for Reuters entitled "Cozying up to big investors at Club Fed."

In it, my colleagues and I detailed other instances of market-moving information inappropriately being shared with investors, a trend we first observed when Fed officials speaking to bankers and hedge fund managers at conferences would suddenly go silent when a reporter walked by.

After the Yellen press conference, I took two weeks of paid leave for the birth of my daughter. When I returned, my editor at the paper told me I would no longer be attending Fed press conferences. No reason was given, and I left the job a few months later.

Market bloggers speculated the Fed had "banned" me from the press conference. I have no reason to think that was the case because the central bank let me back in as soon as I changed news organizations.

Fast-forward to April 4, 2017: Richmond Fed President Jeffrey Lacker resigns abruptly after admitting he was a source of the leak.

As soon as I saw the news, the whole press conference incident flashed before my eyes.

But Lacker's admission that the Medley leak originated with him doesn't entirely settle the matter.

We know Yellen also met with Medley herself. Why? What did she say to them? Former Fed economist and Treasury official Seth Carpenter was also under scrutiny on the issue. What were the results of the Fed's own investigation? And of Congress'?

Also: Why did it take Lacker so long to come forward?

I'll have to keep asking.

*I'm identified in that transcript as a reporter for Dow Jones Newswires, even though I was working for The Wall Street Journal, because both publications are part of the same company and, by tagging me as a Newswires reporter, Dow Jones could get more than one person in the room.


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Squid Viscous's picture

You sir, are no longer welcome at Bushwood!

Gambling with freshly printed money is illegal, and I never slice!

JungleCat's picture

Yes, I agree sir. Filthy spics like da Costa should NOT be asking diificult questions.

There are precious financial fluids to protect!

Comtrend's picture
Comtrend (not verified) JungleCat Apr 4, 2017 9:08 PM

Well, at least there's a silver lining.

Or is it a coal lining? Nevermind, it'a a lining:

World’s Largest Coal Company Emerges from Bankruptcy

bob_bichen's picture
bob_bichen (not verified) Comtrend Apr 4, 2017 10:42 PM

RE: Chronic SPAMMER "comtrend"  AKA  "book man"  AKA  "alt-right girl"  AKA "blue fin"  AKA "audio feeline"  AKA "XYTHRUS"  etc. etc.

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{SINCE HE HAS been regularly outed as a SPAMMER, he has taken to "hiding" the spam links as "goo,gl."   DO NOT BE FOOLED!


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book man
alt-right girl
blue fin
audio feeline

Boris Alatovkrap's picture

Who is care about leak when Fed is practice diarrhea for expanding monetary policy?!

JRobby's picture

Elihu, who is that awful man?

A guest of the Fed, Yellen

buzzsaw99's picture

yes, winter rules. [/judge smails]

Number 156's picture

Im shocked! Shocked, I tell you..!

Smedley's picture

Did she stick her fingers in her ears and start going "lalalalalalala"?


johngaltfla's picture

And anyone who is shocked why most sane people do not trust the Fed look no further than this article.

They are the House and the House always win in a rigged casino.

booboo's picture

1.The whole question he asked Yellen was "fact based"

2. It was not an allegation at the time, it was common knowledge.

3. her response was a canned reponse that had no reasoning as it related to the question.

4. Yellen is a sack of pork meat attached to a jawbone.


serotonindumptruck's picture

You made the error by discussing forbidden topics.

Like for instance: walnut sauce!

buzzsaw99's picture

yellen is outraged that you would question her as if she were gulity of something, which she obviously is, but she is outraged nonetheless.

Bigly's picture

I would like to see how the best NFL kickers could do with that fatbag gnome.  At least 20 yards. No?

MayIMommaDogFace2theBananaPatch's picture

I bet they could get 40 yards if they put her on a tee first.

WTFUD's picture

Spitting feathers i am, that she's so outraged. Her rage is in being tumbled rather than acknowledgment of her Crimes, possibly TREASON!

Her angst is on a par with the Hillary/DNC fraud/affair , not that they didn't commit the crimes but that they were called out on them.

I wonder if President Trump will get around to jailing any of these bastards while i'm still walking around free (ish)?

Bill of Rights's picture

All these scandals, each one more orgasmic than the next. These fuckers pulled this same distracting shit during the savings and loan and loan scam and the same during the 1987 collapse and the Dot Con, 2008 collapse ... now this . All the while they continue to steal our freedom what's left and pillage us even further... shit gets real fucken old. Same play book new year...

WTFUD's picture

There's plenty more tolerance within us yet before the pitchforks come out . . . Sadly!

More_sellers_than_buyers's picture

Pedro!you will survive... the MSM won't.  Stay strong

truthgiver's picture

Lacker-punched her in the fart box

WTFUD's picture

Rendering her a sLacker.

chimchim's picture

Be specific please?
Front or back?

WTFUD's picture

We're all one prick away from a good shafting.

Ok so Sessions/Trump are gonna see this guy does jail time.

equity_momo's picture

Pedro are you that ignorant or is it just an act?
If you need it spellng out :

The "FED" is a PRIVATE institution , ostensibily owned by Wall St , that prints money from thin air that it gives back to its owners so they can "gamble" with at the expensive of every tax payer in the World.
They dont give two short fucks what you or anyone else thinks and they have mankinds greatest military ever assembled to back it up.

Any questions?

WTFUD's picture

All those 'favoured' presslings receiving a pass are provided a list of Don't Ask Questions and yet are still prepared ( PAYCHECK) to go through the motions, just like my wife in bed.

El Hosel's picture

... Ding Ding Ding, your hired.

r0mulus's picture

Don't you mean, "not hired"? ;)

Buster Cherry's picture

Maybe you shouldn't have taken 2 whole weeks off for a kid being born, unless of course it was you that was pregnant.

Fantasy Free Economics's picture

The biggest agenda the Fed will have over the near future is finding a way to excape blame.

It is all explained right here,

James Quillian

Fantasy Free Economics

AgLand's picture

Fuck Mother Felon.

Sledge-hammer's picture
Sledge-hammer (not verified) Apr 4, 2017 11:08 PM

I am not a Harvard trained Phd economist but just a nobody with nothing in flyover land.  I have read and studied some regards the Federal Reserve, but it is like the NSA in that you can not get accurate information on its operations or even what it truly is beyond just some secretive amorphous and opaque quasi-government entity.  I am Red-Pilled completely now, jew-aware, and aware of how the Fed was founded (in secret and in collusion) and what a miserable job it has done in its 100 years plus existence.  I also know that it has been run by jews since its inception.  I know that if you control a man's or a country's money, you control both the man and the country.  The jews know this and have had a strangle-hold on the USA since 1913.  The fact that the Fed is the only entity to be "separate" and pretty much independent of any government oversight or oversight by our law-makers (which should not be the case) tells me that there is all sorts of mischief afoot.  This article's author tells an interesting anecdote.  Why did no one follow up with the Fed officials malfeasance?  Does anyone think it was a cohencidence that the author was essentially cut-off from his beat?  The jews who have run the Fed never seem to have straight answers.  I submit that they are now and have always been full of sh*t by virtue of the fact that you can not predict the future or set-up, maintain, and control a centrally-planned economy/financial system which is akin to what the Fed does.  A planned economy has never worked in history.  I think that rather than just admit that they do not know what they are doing, it is their plan to make everyone think that they are the great and powerful Oz, and no one has the guts or courage to question their omnipotence.  Regardless, this has served the jews interests since 1913, and they are not concerned for the USA, the American citizen, or anything beyond jew interests.  By the way, if and of you want to see something creepy, go to Washington, D.C. and walk by the Federal Reserve building.  It is not enough to see images/photos, you have to go see it in person.  There is something very off-putting about the structure.  It is akin to seeing the Mormon Tabernacle or the Church of Scientology headquarters buildings in person (of which I have seen both).  I describe it such that it seems as though there is a malevolent force emanating from these structures. I am not superstitous; I am just relating something I noticed that does not seem to be coincidental.

dvfco's picture

If you want to see creepy, wonder why there's a Federal Reserve Police Station in Lower Manhattan - directly across the street from Diamond Jim Brady's Bar on Maiden Lane in Manhattan.  They're not a gov't agency!

Wonder why some creepy fuck McMuffin - a Mormon from the CIA & Wall Street ran against Trump in Utah, and all the other former occupants of the White House are so anti-Trump.

The secrets of Obama, Bush(es) and Clintons are enough to bring down this country 100X over.  I'm not talking about Pedophilia, while that's certainly part of it.

It's the unholy alliance formed between the Dems and the Neo-Cons that have cost our country thousands of lives, tens of trillions of dollars, and a chance at either US or World destruction in the coming days or weeks.

Fuck Obama, Clinton & the Bush Family.  

Save our State!  The Media is going for the death kill - and they're getting close.

Back Trump or we are fucking doomed!


CHX13's picture

The USSA is FUBAR, thanks to the FED and decades of political, financial and monetary mismanagment. Congress - both left and right - have sold the country, and not even Trump can bend this, the fall of the empire is now a guaranteed certainty. The exact course and timing this what we still don't yet know. But if things collapse for good, it could happen very quickly, but then again, it may be a drawn-out slow decline. Time will tell, I just hope not to see any mushrooms grow sky-high. 

CHX13's picture

Well said. So you're one step away from becoming a stacker, if you're not one already.

CHX13's picture

Pawn spepped out of line and the department of truth did not approve.

Count Chancellor Lutz Graf Schwerin von Krosigk's picture

Federal Reserve has respectability anymore than Marilyn Monroe had virginity?


I thought the Fed Policy is always shimmering in nudity and singing to any powerful men. Janet Yellen does have large tits...

SweetDoug's picture

You sir, are NOT a 'team player'!

This is how 'the troublemakers' are dealt with, despite the lofty rhetoric of 'whistle blowers'.

Salute to you, for asking the questions!