New Economics Research Suggests the Fed's "Less Is More" Approach to Announcements May Keep Markets Stable.

Newswise — New economics research suggests the Fed's "less is more" approach to announcements may keep markets stable. FINDINGS:The research offers an economic rationale for why precise guidance from the Federal Reserve is not always more stabilizing for the economy. The team studied how Treasury markets moved over three decades of Federal Reserve announcements and found that when the Fed’s guidance was more precise, markets reacted more strongly to news. and found that when the Fed’s guidance was more precise, markets reacted more strongly to news. An overview of the research, "New economic research suggests less can be more in Federal Reserve announcements" can be found on our news website.