Does the Beige Book Move Financial Markets?
FRB of Atlanta Working Paper No. 2003-3
32 Pages Posted: 11 Jun 2003
Date Written: January 2003
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.
Keywords: Federal Reserve, Beige Book, stock market, interest rates
JEL Classification: E5, E44
Suggested Citation: Suggested Citation