The news wire service, Reuters, reported that Larry Meyer revealed time-sensitive, market-relevant information
The minutes of these FOMC meetings are released to the public but after three weeks have passed. Meyer reportedly exposed the secrets of the meeting after a mere nine days.
In it’s expose, the Reuters story continues…
A respected economist, Meyer charges clients around $75,000 for his product, which includes a popular forecasting service. He frequently shares his research with reporters, though he kept this note out of the public eye. Reuters obtained a copy from a market source. Meyer declined to comment for this story, as did the Federal Reserve.
By necessity, the Fed spends a considerable amount of time talking to investment managers, bank economists and market strategists. Doing so helps it gather intelligence about the market and the economy that is invaluable in informing the bank’s decisions on borrowing costs and lending programs.
This selective dissemination of information gives big investors a competitive edge in the market. In the past, Fed officials themselves have privately expressed discomfort about the cozy ties between the central bank and consultants to big investors, though their concerns have largely fallen on deaf ears.
No one is accusing Meyer and his firm, Macroeconomic Advisers — or any other purveyors of Fed insights for that matter — of wrongdoing. They are not prohibited from sharing such information with their hedge fund and money manager clients.
But critics question whether it is proper for Fed officials to parcel out details that have the potential to move markets around the world, especially with the government’s involvement in the economy being so pronounced.
To read the entire report can be found on Reuters’ site by clicking on the link embedded in the quotes provided above.