Federal Reserve Chair Janet Yellen needs to get her story straight.
Yellen faced a tough grilling on the central bank’s ethics and communications policies during congressional testimony from Rep. Ann Wagner. Wagner laid out a number of troubling instances of dubious ethical behavior — including leaks of private information to investors and private speeches to money-making audiences.
She was speaking before the House Financial Services Committee, which has been investigating the Fed over potentially criminal leaks of sensitive internal information to private sector consultants.
In particular, Wagner asked Yellen about the practice. The Fed’s official policy on external communications, drafted as recently as 2011 and only after reporting on other Fed leaks, states the following:continue reading »