As we reported on Friday morning, in a surprise announcement the Fed revealed under its "Government in the Sunshine" protocol that it would hold a closed meeting under expedited procedures in which it would review the "advance and discount rates to be charged by Federal Reserve Banks." The last time such a meeting took place was less than a month before the Fed hiked rates for the first time in years.
What took place during the meeting will remain a mystery, however what made it particularly interesting is that just hours later it was followed by another impromptu closed-door session, this time between president Obama and Janet Yellen.
What information was exchanged during the follow up meeting is also a secret, although the White House was kind enough to release the following statement:
"The President and Chair Yellen met this afternoon in the Oval Office as part of an ongoing dialogue on the state of the economy. They discussed both the near and long-term growth outlook, the state of the labor market, inequality, and potential risks to the economy, both in the United States and globally. They also discussed the significant progress that has been made through the continued implementation of Wall Street Reform to strengthen our financial system and protect consumers."
We also will never know if there is any coincidence between these two meeting and the fact that just after they took place, the S&P went from red on the year to fresh 2016 highs in under two days.
We do know, however, that it is a very busy week for unexpected, emergency meeting for the Fed, because according to the Fed's board meeting website, today at 3pm the Fed held yet another previously unscheduled "meeting under expedited procedures", only instead of discussing rates this time, the Fed talked about institutions, infrastructure and financial markets.
Don't expect the Fed to disclose what was said during this meeting either, although keep an eye on stocks: they may be the only tell one needs.