Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, has abruptly resigned after apparently admitting he was the source of a leak of secret, market-sensitive information about key discussions on interest rate policy within the central bank to consulting firm Medley Global Advisors.
“The Federal Reserve places a high priority on safeguarding information,” the Richmond Fed said in a statement. “We expect every employee to comply with all relevant policies and procedures, as well as our standards of conduct. Employees must review and acknowledge our policies annually. Once our Bank’s Board of Directors learned of the outcome of the government investigations, they took appropriate actions.”
The regional bank added: “We are focused on moving forward within our organization-and were already underway with our presidential search, following Jeffrey Lacker’s announcement in January to retire in 2017. This search process will continue as scheduled.”
Lacker’s departure adds turmoil to what was already a shaky picture from a personnel standpoint for the central bank, with President Donald Trump expected to make key appointments in the months and years ahead.
In the interim, first vice president Mark Mullinix is serving as the bank’s acting president, the Richmond Fed said. Regional Fed presidents are appointed by their boards of directors, made up of bankers, businessmen and community leaders, while governors of the Fed’s Washington-based board are appointed by the US president.
The leak to Medley took place in 2012. It involved deliberations about the reasoning behind the Fed's actions to stimulate the economy, in particular its bond-buying programs.
The Federal Reserve board declined to comment on Lacker's resignation.
This story is developing...