Report
Does the Federal Reserve really react to share price fluctuations? What consequences?
Our estimates and a number of studies ( 1) have showed that the Federal Reserve reacts to fluctuations in share prices, particularly when they fall. So there really is a “Fed put†on the equity market. As a result : US m onetary policy today has an expansionary bias; It is not very dangerous for investors to buy US equities, which may explain some of the resilience of the US equity market. “ The Economics of the Fed Putâ€, A. Cieslak , A. Vissing -Jorgensen, CEPR Discussion Paper no. 14685
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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