Give me a break.
I’ve written on this so many times that I can’t count it. The infamous 2007 “August OpEx Surprise” discount rate cut was obviously leaked to the banks in question, as there was a monstrous increase in both call buying and financial stock volume the afternoon before the action.
This is a complete scam folks and always has been. I’ve been paying attention to this issue since the 1990s when it was clear that inside information was being used on government data releases.
Can someone find me just one example of a prosecution of a Wall Streeter for inside trading on government data releases? I can’t recall it ever happening.
Reality is that there has always been an issue with government data being “glad-handed” to people ahead of time, and when it comes to thinks like Fed actions and such The Fed often actually polls primary dealers before it acts, either directly or indirectly.
At its core this system is corrupt and there is no real solution available until and unless the concept of “primary dealers” is eradicated. Why should the nation’s largest commercial banks (along with foreign banks!) be given what amounts to not only a monopoly privilege on government borrowing? Not only do they get a captive “skim” on such issues, but in addition they wind up being part of the information conduit on policy actions and thus have the “privilege” of being able to steal from their customers on a routine basis as well!