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MNI BRIEF: Fed Presidents Send Strongest Policy Signal: Study

FRANKFURT (MNI)

Federal Reserve Bank communications by regional Fed presidents provide a stronger signal on the likely direction of monetary policy than those by Board Governors, a working paper published by the Bank of Spain Tuesday found after studying speeches between 1997-2018 .

A higher topic intensity or negative tone is also associated with more monetary policy accommodation than implied by the state of the economy, Klodiana Istrefi (Banque de France), Florens Odendahl (Banco de Espana) and Giulia Sestieri Klodiana Istrefi (Banque de France) write, with speeches focusing on financial conditions, financial stability, supervision and regulation are more likely to suggest monetary easing, and speeches on housing are more closely associated with a tighter policy stance.

MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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