Which Fed Members Move the Market?

Seriously geeky analysis from Macroeconomic Advisers. They looked at the speeches of Fed officials to see who had the biggest impact on the financial markets.

Greenspan, who was replaced as chairman by Ben Bernanke on February 1, hit markets the most. But his importance dropped sharply compared with previous years, while the influence of St. Louis Fed President William Poole climbed into second place from third in a previous survey conducted between November 2001 and December 2004.
Poole was followed by Board Governor Donald Kohn, up from fourth in the prior survey, with Dallas Fed President Richard Fisher in fourth place and New York Fed chief Timothy Geithner in fifth. Philadelphia Fed President Anthony Santomero placed sixth in both 2005 and in the previous survey.
“The most provocative interpretation (of this change) is that market participants anticipated that the Committee was going to become more democratic once Greenspan departed, and hence began to pay more attention to the comments by other FOMC members,” Meyer and Sack wrote.

Posted by on March 2nd, 2006 at 6:12 am


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