Academic Study Says Fed Engaged In Systematic Leaks To Insiders

Researchers at Duke University and the University of California at Berkeley point to quantitative evidence that the U.S. Fed  consistently leaks non-public information about its meetings, driving an investment pattern that has led to market gains. [buffett] Pattern of Fed leaks and market gains established The study, first reported by The Daily Californian, considers historical patterns in stock prices relative to the distribution of non-public Fed information. “The Fed uses ‘informal communication channels’ on even-numbered weeks after FOMC meetings,” the report said, pointing to leaks making it into media stories such as the Wall Street Journal as well as showing up in…