When Bankers Go to Hail: Insights into Fed-Bank Interactions from Taxi Data

72 Pages Posted: 15 Mar 2018 Last revised: 9 May 2022

See all articles by Daniel Bradley

Daniel Bradley

University of South Florida

David Andrew Finer

Hum Capital

Matthew Gustafson

Pennsylvania State University - Smeal College of Business

Jared Williams

University of South Florida

Date Written: April 30, 2022

Abstract

We introduce taxi ridership between the Federal Reserve Bank of New York and large financial institutions headquartered in New York City as a novel proxy for Fed-bank face-to-face interactions. We document a negative relation between past Fed-bank interactions and future stock market returns, particularly on days around the Fed’s public announcements. We also find significantly elevated Fed-bank interactions immediately following the lifting of the FOMC blackout. Our findings suggest that the Fed increases its information gathering via face-to-face interactions when it possesses negative private information about the condition of the economy.

Keywords: The Federal Reserve, FOMC, Monetary policy; NY Fed, Taxi ridership

JEL Classification: E50, E52, G20

Suggested Citation

Bradley, Daniel and Finer, David Andrew and Gustafson, Matthew and Williams, Jared, When Bankers Go to Hail: Insights into Fed-Bank Interactions from Taxi Data (April 30, 2022). Available at SSRN: https://ssrn.com/abstract=3141240 or http://dx.doi.org/10.2139/ssrn.3141240

Daniel Bradley

University of South Florida ( email )

Tampa, FL 33620
United States

David Andrew Finer

Hum Capital ( email )

228 Park Ave S
New York, NY
United States

Matthew Gustafson

Pennsylvania State University - Smeal College of Business ( email )

East Park Avenue
University Park, PA 16802
United States

Jared Williams (Contact Author)

University of South Florida ( email )

Tampa, FL 33620
United States

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