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Hensarling and Duffy Comment on Investigation into Fed Leak

Washington, May 5 -

Financial Services Committee Chairman Jeb Hensarling (R-TX) and Oversight and Investigations Subcommittee Chairman Sean Duffy (R-WI) released the following statement on Tuesday regarding the committee’s investigation into a leak of market-sensitive information from the Federal Open Market Committee:

“Oversight of federal agencies is one of Congress’ most important duties, and we are pleased our committee’s oversight work has prompted the Federal Reserve to finally take this leak of confidential, market moving information from its Federal Open Market Committee seriously.  Anyone disclosing such information would be subject to possible criminal liability.  At a minimum, this disclosure suggests the Fed lacks sufficient internal controls to safeguard the confidentiality of market-sensitive information.  Yet despite the seriousness of this matter, our committee’s initial requests to learn how this breach occurred were ignored by the Federal Reserve.  It was only when we started asking questions that we were told the Fed’s inspector general had already conducted an investigation and could not identify the leaker.  Then when we asked more questions, we were told the Fed’s inspector general had abruptly reopened its investigation in March and, therefore, the Fed and the Fed's inspector general could not provide us with answers because the investigation was suddenly ‘ongoing.’

“Despite these disappointing attempts to thwart congressional oversight, our committee’s investigation will continue because there must be transparency and accountability at the Federal Reserve.”

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