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The market impact of the Fed press conference
In April 2011, as part of a long-term shift toward transparency, then Federal Reserve Chair Ben Bernanke started holding press conferences on the final day of some Federal Open Market Committee (FOMC) meetings. These press conferences have since become a highly anticipated part of the Fed’s communications with the public. Recent events highlight just how large the impact of FOMC press conferences can be on markets: during six FOMC press conferences in the past year, the S&P 500 lost or gained over 1% – $300 billion – in value. A large literature considers how Fed communications affect financial markets (as ... (full story)