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Does the Beige Book move financial markets?

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Abstract

About two weeks prior to each FOMC meeting, the Federal Reserve releases a description of economic activity in a document called the Beige Book. The authors examine whether the descriptive content of the Beige Book affects asset prices. The results indicate that more positive Beige Book reports on economic growth are associated with increases in interest rates, particularly long-term rates, even after controlling for other macroeconomic data releases. Stronger Beige Book reports are positively associated with changes in equity prices during expansions but negatively during recessions.

Suggested Citation

  • Donna K. Ginther & Madeline Zavodny, 2003. "Does the Beige Book move financial markets?," FRB Atlanta Working Paper 2003-3, Federal Reserve Bank of Atlanta.
    • Handle: RePEc:fip:fedawp:2003-3
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    References listed on IDEAS

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    Cited by:

    1. Michelle T. Armesto & Ruben Hernandez-Murillo & Michael T. Owyang & Jeremy M. Piger, 2007. "Identifying asymmetry in the language of the Beige Book: a mixed data sampling approach," Working Papers 2007-010, Federal Reserve Bank of St. Louis.
    2. Mickaël Clévenot & Ludovic Desmedt & Matthieu Llorca, 2015. "The Power of Words: Issuance and Reception of Central Banker's Discourse [Le pouvoir des mots : émission et réception du discours du banquier central]," Post-Print hal-04711754, HAL.
    3. repec:fip:fedcwq:98080 is not listed on IDEAS
    4. Scott Hendry & Alison Madeley, 2010. "Text Mining and the Information Content of Bank of Canada Communications," Staff Working Papers 10-31, Bank of Canada.

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    Keywords

    Business forecasting; economic conditions - United States; Federal Reserve System; Economic indicators; Financial markets;
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