Rigged? NYFed Slams Study Showing Alleged Collusion Between Fed, Banks Around FOMC Meetings

 

The retail investor wades into the financial seas at a disadvantage. He or she can still do well of course. He or she can still succeed. But knowing the moves of the Federal Reserve before the Federal Reserve initiates them would be a huge advantage. Some believe that some of the financially connected get word of such moves early. Recently a PHD student at The University of Chicago explored whether this was the case.

(From Zerohedge)

As The Wall Street Journal reports, Finer found a jump in New York City taxi cab activity between the Federal Reserve Bank of New York and major Wall Street banks around the time of central bank policy meetings, and the study’s author says the findings suggest an increase in informal communications between Fed employees and individuals in the private sector could be occurring.

Mr. Finer used government-provided GPS coordinates, vehicle information and other travel data to track taxi traffic between the addresses of the New York Fed and major banks. His research pointed to increased traffic between the destinations around lunch and late evening hours, which suggested informal meetings were taking place.

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