17 posts on "Financial Markets"
May 8, 2020
The Money Market Mutual Fund Liquidity Facility
To prevent outflows from prime and muni funds from turning into an industry-wide run after the COVID-19 outbreak, the Federal Reserve established Money Market Mutual Fund Liquidity Facility. This post looks at the Fed’s intervention, its goals, and the direct and indirect market effects.
Posted at 7:00 am in Central Bank, COVID-19 Facilities, Credit, Federal Reserve, Financial Institutions, Financial Intermediation, Financial Markets, Liquidity, Monetary Policy, Pandemic | Permalink
November 26, 2018
The Pre‑FOMC Announcement Drift: More Recent Evidence
We had previously documented large excess returns on equities ahead of scheduled announcements of the Federal Open Market Committee (FOMC)—the Federal Reserve’s monetary policy-making body—between 1994 and 2011. This post updates our original analysis with more recent data. We find evidence of continued large excess returns during FOMC meetings, but only for those featuring a press conference by the Chair of the FOMC
July 1, 2015
What Do Bond Markets Think about “Too‑Big‑to‑Fail” Since Dodd‑Frank?
As we discussed in our post on Monday, the Dodd-Frank Act includes provisions to address whether banks remain “too big to fail.”
April 8, 2015
From the Vault: Separating News and Noise … and Jokes
Tesla Motors’ shares saw a brief bounce from a far-out and fictional product (a smart watch) announced as part of an April fool’s prank. While markets evidently made quick sense of the joke, that’s not always the case.
Posted at 12:40 pm in Financial Markets | Permalink
March 9, 2015
Herd Behavior in Financial Markets
Over the last twenty-five years, there has been a lot of interest in herd behavior in financial markets—that is, a trader’s decision to disregard his or her private information to follow the behavior of the crowd.
April 9, 2014
Lunch Anyone? Volatility on the Tokyo Stock Exchange around the Lunch Break on May 23, 2013, and Stock Market Circuit Breakers
Stock market circuit breakers halt trading activity on a single stock or an entire exchange if a sudden large price move occurs.
January 4, 2012
Forecasting with Internet Search Data
Most economic data are released with a lag, sometimes quite a substantial one. Since the advent of regularly scheduled releases of economic data in the 1930s, a key challenge for economists has been to identify indicators that provide timely information about the release before it comes out—effectively, that “now-cast” its content.
Posted at 7:00 am in Exchange Rates, Forecasting, Housing, Regional Analysis, Unemployment | Permalink | Comments (4)
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