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 organisation — 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. In the interim, First Vice President Mark Mullinix is serving as the Bank’s acting president.”
This story is developing…
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