How does Federal Reserve communications influence financial assets? (Fedspeak)
Guidelines from teacher based on the attached abstract are in quotation marks below:
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“A general topic of Fed communications and financial market performance is a good one. That would be a brief review of Fed communications (they have changed a lot over the years and much has been written on this.) Then there is ample research on how Fed communications have influenced markets. You may even think about broadening this to “Central Bank” communications and market performance. This is a clean, and ultimately beneficial study. I would stay away from the more “psychological” issues of how the Fed may cause “fear”, or feed irrational decision-making, or whether or not this is “dangerous” in some political way. Those ideas are a bit of a quagmire for a term paper I think.”
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