House Oversight and Investigations Subcommittee Chairman Sean Duffy (R-WI) joined Financial Services Committee Chairman Jeb Hensarling (R-TX) in releasing a statement on Tuesday regarding a potential leak of market-sensitive data from the Federal Open Market Committee.
“Oversight of federal agencies is one of Congress’ most important duties,” the congressmen stated. “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.”
The lawmakers explained that at the very least, the disclosure of such sensitive information suggests the Federal Reserve is missing the needed internal controls to safeguard the required confidentiality of the data it collects. They were equally concerned that the agency seemed to ignore their requests for information on how the breach occurred.
“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,” Hensarling and Duffy explained. “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.’”
The duo said they would continue to hold the Federal Reserve accountable.
“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,” they concluded.