richmond fed president jeff lacker resigning from the federal reserve.e is acknowledging that he was the source of information about an investigation that came from a story from medley global advisers in september 2012. the story has been out there for five years. we have not known the source of the leak. jeff lacker now saying he was a person who confirmed information in possession of the analysts during the call. jeff lacker saying, quote, my conduct was inconsistent with federal reserve policies. he's disclosing -- he says he did disclose that the analysts had the information in talks with the u.s. attorney's office in the southern district in 2 5 2015, but he did not disclose it in 2012 when he was interviewed by the federal reserve's general counsel. he says, quote, i crossed the line. a 13 year veteran scheduled to retire in october. he is retiring immediately. jeff lacker standing down and resigning after admitting he was the source of the confirmation of information in that medley global adviser story that caused such a controversy back in 2012.

throughthat jeff lacker his statement and subsequently confirmed to us on the telephone by mr. er, this concerns the 12obe of these september 20 fomc minutes. they opened the floodgates again and added an extra layer of treasury purchases and listen to forward guidance. medley published a report in october, the day before a september meeting came out, foreshadowing this further swaying of easing in december. the report was called december band, and this erupted a while ago, they're been multiple investigations, the fed ran an investigation, the fed ig ran an investigation, jeff lacker talks about the fbi talks about seven district of manhattan. the plot thickens, and we find out more in the coming days. thank you so much, dan moss. oliver: still ahead, president trump's auto factory push may be in jeopardy at following yesterday's weak sales numbers. this is bloomberg. ♪ scarlet: in business, disappointing auto sales yesterday may signal the industry sales winning streak could be running out of gas. carol massar and cory johnson are here. we're joined by the ceo all the way from

jeff lacker is not the original source of the leaked information. as just confirming. >> appears the reporter had the information previously and lacker suggested in the letter that he inadd vert tently confirmed it by not hanging up the phone, but not denying it. it's unclear how deid that, but the reporter had the information ahead of time. >> and, steve, you said there's not going to be charges pressed against him, but why did he negotiate departure with law enforcement? >> apparently, there's some sort of rule we're trying to get to the bottom of, but the he should have discolossianed in the interview with the general counsel that the reporter had confidential information. he otherwise disclosed the conversation, but it seems like i can't tell if it's a technicality or what and inadvertent disclosure of information; i don't know if that was something chargeable. >> all right. thank you, steve. >> thank you. >> pleasure. >> our steve leisman. time for a cnbc news update. hi, sue. >> hi, everybody. the u.k.'s ambassador to the united nations called

dan moss, with the richmond fed lacker,lacker -- jeff where does that leave them?ver someone you look to it in terms of getting the center of gravity. he didn't always dissent in terms of higher rates. sometimes he dissented on whether the policy should be as loose as it was. there is a tradition at the with a tradition on , this will have no impact on policy. scarlet: got it. dan: when you look at the brief statement that the board put out in response, would we be correct in saying that this has been areed and that the leakers still out there? what do you think the next step is? is there a next step? -- andrew: a critical thing that should have happened on day one was notification of law enforcement agencies. now there are agencies involved. it was mentioned in the letter to the fbi. attorney for the southern district of new york, which you should keep in mind here is the person who, that office is responsible for enforcing trading rules and the use of internal information inappropriately. and the commodity futures trading commission is involved in the investigati

have spokenke jeff favorably about jeff lacker. here -- does he represent southern district correctly inseen some instances, as an opponent of stimulus and the bank bailouts. behold he was involved in the league. jeff said he had confirmed -- did not waive the analysts off. when of the favorite republicans district bank presidents turns out to have been involved in has to walk the plank. not great. these are on the headlines. where they are during the balance sheet now? >> it's the next stage of normalization. --ve got past us whole thing this whole thing. the talk about unwinding -- this is -- all the stuff that was acquired during the crisis was -- kevin: what makes him think that doing this now come particularly when janet yellen might not be the chair next year? i understand president, trump will make major appointments. they might not want to be raising interest rates. we have the u.s. economy which for all its flaws is at or approaching the federal reserve's goals. inflation,asure of hit their 2% target in february. while ther

supposed to disclose confidential information, and that is where this really veers off the rails, jeff lackerve told anybody in a commercial position what was going on. were lookingcutors into this, as was the commodity futures trading commission, because it was nonpublic information, it could be an insider trading case. according to the statement as i read it, lacker said he didn't devil's information, but confirmed it. there may be more to this than just mr. lacquers participation. we haven't had an update lately from legal authorities on the status of the case, but i'm sure we will get one now. david: michael mckee, international economics and policy correspondent. julie hyman joining the well as we get the news that jeffrey lacker of the richmond fed resigns today, effective immediately, after violating disclosure policies at the richmond fed. this is bloomberg. ♪ david: this is "bloomberg markets trump: first 100 days." with a focus on policy and politics under the new administration. i'm david gura. paul ryan says no deal has been reached through rick hair the bill -- to repair the bill

i'm shocked by the jeff lacker situation.eeply about ethics and integrity. it's a very ethical institution. and we all need to work extra hard to make sure we maintain the public's trust. so we're all shocked by it. but i think appropriate action was taken. >> okay. neel kashkari, thank you. appreciate your time. >> still to come on "squawk box," reaction to the air strikes in syria from nbc diplomacy analyst and former supreme allied nato commander james stavridis. implications with russia and beyond right after this break. at the top of the hour we're going to kick off the final countdown to the jobs report. we have the numbers and the market reaction at 8:30 a.m. this morning. it's big screen entertainment, right in your hadnds. buy a samsung galaxy s8 and get one free when you have direct tv and add a line. may not always be clear. but at t. rowe price, we can help guide your retirement savings. so wherever your retirement journey takes you, we can help you reach your goals. call us or your advisor t. rowe price. invest w

in fact i don't remember who it was from but it was the e-mail with the jeff lacker statement. >> andy moley or something? >> well, my initial reaction was this is something that's come up over time, and i panicked immediately that i wasn't familiar enough with the details of the case, and i remember it at the time, when it first came out, when we first learned of the investigation. and i remember when the initial information came out, i didn't think very much of it. but i want to just talk for a second, joe, about some of the reactions that are coming in this morning. >> sure. >> to the resignation yesterday of lacker. and he admitted, by the way, what we're talking about, in case you didn't follow it. he admitted his involvement in disclosing confidential information in a 2012 discussion with a financial analyst. here's lacker's statement. quote, i regret that in this instance i crossed the line to confirming information that should have remained confidential. lacker spent 134 years as president of the richmond fed. and he's been at the bank in total for near three decades. he was s