TY - JOUR
T1 - The market reaction to federal reserve policy action from 1989 to 1992
AU - Reinhart, Vincent
AU - Simin, Timothy
N1 - Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 1997
Y1 - 1997
N2 - An examination of the market reaction to Federal Reserve policy easings from 1989 to 1992 suggests that these actions were mostly unexpected and were not viewed to be persistent. Changes in the intended trading range for the federal funds rate had their greatest impact on the near-term outlook, but those effects diminished as the investing horizon lengthened. By this interpretation, any change in longer-term interest rates was mostly owed to the consequences of lower near-term rates, not to any substantial revision to the longer-run outlook. Most significantly, the range of reaction was remarkably wide across all markets.
AB - An examination of the market reaction to Federal Reserve policy easings from 1989 to 1992 suggests that these actions were mostly unexpected and were not viewed to be persistent. Changes in the intended trading range for the federal funds rate had their greatest impact on the near-term outlook, but those effects diminished as the investing horizon lengthened. By this interpretation, any change in longer-term interest rates was mostly owed to the consequences of lower near-term rates, not to any substantial revision to the longer-run outlook. Most significantly, the range of reaction was remarkably wide across all markets.
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U2 - 10.1016/s0148-6195(96)00077-x
DO - 10.1016/s0148-6195(96)00077-x
M3 - Article
AN - SCOPUS:0011762370
SN - 0148-6195
VL - 49
SP - 149
EP - 168
JO - Journal of Economics and Business
JF - Journal of Economics and Business
IS - 2
ER -