Richmond Fed President Lacker Resigns, Admits Medley Leak

Apr 4 2017 | 1:31pm ET

Richmond Federal Reserve Bank President Jeff Lacker has resigned after failing to disclose that he had discussed information about the central bank's stimulus plans to advisory firm Medley Global Advisors. 

"My conduct was inconsistent with Federal Reserve policies," Lacker said in a statement. Lacker failed to disclose information about his conversations with Medley Advisors in 2012, a rumored leak that caused significant embarrassment to the central bank and led to probes in Washington.

In January 2016, the Federal Reserve disclosed that it was highly concerned about leaks of its confidential discussions dated back to 2010 when the central bank was considering additional stimulus. 

The central bank had been probing information that spilled into the pages of the Wall Street Journal in September 2012 and a letter by Medley Global Advisors the following month. Both sources of content revealed differing opinions of members of the Fed Open Market Committee before the public release of committee minutes. 

Today, Lacker admitted that he had discussed the information about rate hikes with an analyst at Medley, although it remains unclear if Lacker offered the information, confirmed it, or failed to dismiss or deny any information that Medley may have obtained.

The Richmond Fed said that it began a search for a new president after Lacker announced his retirement in January. 

[Editor's Note: This story is still developing and is being updated as new information emerges.]


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