Did the Fed just give its buddies an advantage over the investing public?
We know the Federal Reserve’s goals are twofold: to stabilize inflation and maximize employment growth.
However, it was apparent this morning that it has added a third mission: to help line the pockets of its buddies on Wall Street.
Let me explain …
This morning the Fed announced it had “inadvertently” released the minutes of its March 19-20 Federal Open Market Committee meeting yesterday afternoon, a full day early
I guess that "mistake" could be tolerated if everyone got the data early.
But the minutes were only e-mailed to a small group of around 100 Congressional staffers and trade lobbyists.
Surprise, surprise … many of these lobbyists work for, or have worked for, hedge funds, banks and other financial institutions. And who knows how many passed on this information to their friends.
In fact, lobbyists for Citigroup (C) and JPMorgan Chase & Co. (JPM) were among those to have received the minutes yesterday.
Meanwhile, the Fed didn’t release the same information to the broader markets until this morning at 9 a.m. — giving its buddies on Wall Street a full 17-hour head start to trade on this information.
OK, the Fed made a "mistake." That’s not exactly a shocker. But there’s an easy fix, right? After all, this is public information … why the delay in getting this information out to the rest of us until today?
The Fed claims it didn’t know about the early release until this morning.
However, as those of us in the publishing business can attest, there is always someone who knows exactly when a message is going live … and to whom. ...