This wasn’t the first time a Federal Reserve official had spoken before an invite-only group of people who might have benefited from speaking to him. In March 2017, Stanley Fisher, Vice Chairman of the Federal Reserve, gave an award closed letter at the Brookings Institution that sparked some protest. More commonly, Federal Reserve officials meet with economists and traders from banks and investment funds in small groups to share information about markets and the economy.
Our coverage of the investment world
The stock and bond market slump this year has been painful, and it’s still hard to predict what the future holds.
- Bad year for bonds: This was the most bond-destructive time since at least 1926 – and perhaps for centuries. But a lot of damage is already behind us.
- Opposing viewpoints: Some investors don’t see how the Federal Reserve can bring down inflation without risking higher unemployment. The Federal Reserve looks more optimistic.
- Bypassing the storm: The turmoil in the stock and bond markets has been particularly hard on people paying for college, retirement or a new home. Here are some tips.
- College savings: With the stock and bond markets fluctuating, 529 plans began to unravel. What does the family do? There is no one-size-fits-all answer, but You have options.
Fed officials speak regularly at banking events, although their observations are usually reported to the media and either open to them, broadcast or recorded. Such was the case with the UBS event where Mr. Pollard was a speaker on Saturday.
What is remarkable about Mr. Pollard’s Citi meeting is that it was neither an information gathering trip with a handful of people nor a publicly available speech. About 40 people attended the event, which had an official agenda and was announced to Citi clients, two people familiar with the event said. Mr. Pollard spoke for 10 minutes before answering questions from the audience.
“It is important, even mission critical, that the Fed is in an open dialogue with all sectors of the economy,” said Caleb Nygaard, who studies central bank at the University of Pennsylvania. “A lot of the message, as well as the spirit, is that central bankers are supposed to be on the receiving end.”
What we consider before using anonymous sources. Do you know the sources of information? What is their motive for telling us? Has it been proven reliable in the past? Can we confirm the information? Even as these questions satisfy, The Times uses anonymous sources as a last resort. The reporter and at least one editor know the identity of the source.
The Citi forum also included central bank governors from outside the US – including Anna Breimann, the deputy governor of Sweden’s Riksbank, and Olli Rehn of the European Central Bank’s Governing Council – but at least some of their appearances have been reported in the news. The media and some of them words have been posted.
It is not clear whether Mr. Pollard’s speech is in violation Fed Connection Rulesbut some outside experts said they looked like they were tiptoeing close to the line.
Fed rules do not explicitly prohibit central bankers from holding closed-door meetings, although they say that “to the extent possible, committee participants will refrain from describing their personal views on monetary policy in any meeting or conversation with any individual or company. OR which organization can profit financially” unless such views are already expressed in its public communications.
“Beer buff. Devoted pop culture scholar. Coffee ninja. Evil zombie fan. Organizer.”