How did the Fed respond to the stock market?

The appropriate role for equity prices in monetary policy deliberations has been hotly debated for some time. In this Discussion Paper from the Boston Fed the authors show that after controlling for the information that actually enters the FOMC's decision-making process, equity prices have had no independent effect on monetary policy.

Click here to read the article "How did the Fed respond to the stock market?" on the Federal Reserve Bank of Boston's web site

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