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Club Fed: the ties that bind at the Fed

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USA-FED/BERNANKE We’re getting a lot of good feedback on our special report on cozy ties between Wall Street and the Fed. As one Wall Street economist put it: “I’ve never seen the ‘Fed Alumni Association’ used more extensively for back-channel communications with the Street than has been the case since June.”

The story pulls back the veil on the privileged access that Federal Reserve officials give to big investors, former Fed officials, money market advisers and hedge funds.

Another economist from a European bank thanked us for the report, saying: “I hate the idea that monetary policy is communicated through non-official channels, be it old friends or newsprint.”

Personally, I’d argue that if it comes via the press, at least the information is available to everybody in the market at the same time, but then a journalist would say that.