What Insights Do Taxi Rides Offer into Federal Reserve Leakage?

62 Pages Posted: 17 Apr 2018

See all articles by David Andrew Finer

David Andrew Finer

University of Chicago, Booth School of Business, Finance

Multiple version iconThere are 2 versions of this paper

Date Written: April 15, 2018

Abstract

How do markets learn about central banks? Employing narrative evidence and futures data, Cieślak, Morse and Vissing-Jørgensen (2018) argue that private, informal channels systematically carry Federal Reserve information to markets around monetary-policy meetings. I complement their work with an analysis of potential channels: New York Fed insiders' interactions with commercial bankers. Using taxi data, I find highly statistically significant evidence that late-night meetings at the New York Fed and lunchtime offsite interactions increase around FOMC meetings. These results suggest increased opportunities for Federal Reserve information to flow to markets along informal or discreet channels.

Suggested Citation

Finer, David Andrew, What Insights Do Taxi Rides Offer into Federal Reserve Leakage? (April 15, 2018). Available at SSRN: https://ssrn.com/abstract=3163211 or http://dx.doi.org/10.2139/ssrn.3163211

David Andrew Finer (Contact Author)

University of Chicago, Booth School of Business, Finance ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

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