FOMC policy rate guidance pushes up US equity prices
Explicit Federal Open Market Committee (FOMC) policy rate guidance announcements at the zero lower bound lead to a significant increase in US equity prices, for an aggregate equity index as well as for US commercial bank and US non-financial equities, according to a Netherlands Bank working paper.
Effects of explicit FOMC policy rate guidance on equities and risk measures by Richhild Moessner quantifies the impact of explicit FOMC policy rate guidance used as an unconventional monetary policy
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