Article detail · 2004
The response of term rates to fed announcements
Journal
JOURNAL OF MONEY CREDIT AND BANKINGISSN 0022-2879
The ISSN points to another catalog journal; the name is from the YÖKSİS record.
- Year
- 2004
- Type
- article
Data source split
- YÖKSİS YÖKSİS article record
- YÖKSİS venue JOURNAL OF MONEY CREDIT AND BANKING
- Catalog match (ISSN) Journal of Money, Credit and Banking
- OpenAlex OpenAlex enrichment (abstract, citations, topics)
Abstract
OpenAlex · English
In February 4, 1994 the Federal Reserve began the practice of announcing changes in the targeted level for the federal funds rate immediately after such decisions were made. This paper investigates to what extent the policy of "the announcement" affected a key ingredient in the monetary transmission mechanism: the term structure of nominally risk-free, Treasury securities. We find that term rates react much more in unison during announcement days than at any other time. Moreover, the practice of circumscribing almost all changes in the federal funds rate target to Federal Open Market Committee (FOMC) meeting dates regiments the formation of market expectations in the overnight rate and the price discovery process of term rates, thus facilitating the Fed's goal of controlling long-term rates.
Topics
Citations
OpenAlex cited_by_count. Not a WoS or Scopus citation count; those sources have no separate column here.
97 citations
OpenAlex cited_by_count (cache / database)
12 publications in the local catalog that cite this work (OpenAlex reference match; not the full global list).
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