An internal document circulated at the Federal Reserve Bank of Richmond today states that the bank will no longer display the "Gay pride" flag during "Gay Pride" month.  You may recall that the decision to fly the flag earlier this year met with significant opposition from within and outside the Bank. The document, from bank President Jeff Lacker and VP Sally Green states, "Ultimately, this decision rests with the two of us.  At this time, we have decided to limit our external displays to those that are directly related to our central bank role or are part of a visible community-wide observance."

The decision is a clear indication that the bank over stepped its bounds when it made the decision to fly the flag in the first place.

More on this breaking story later.