Citation:
[Journal:] Contemporary Economic Policy [ISSN:] 1465-7287 [Volume:] 38 [Issue:] 3 [Publisher:] Wiley Periodicals, Inc. [Place:] Boston, USA [Year:] 2020 [Pages:] 403-408
Publisher:
Wiley Periodicals, Inc., Boston, USA
Abstract:
After appointing Federal Reserve Chairman Powell, President Trump put pressure on the Fed to cut interest rates. We show that, on average, a statement from Trump on the Fed led to lower long-term interest rates, consistent with expectations of lower expected future short rates. However, the impact of Trump's statements declined over time. (JEL E52, E43, E32)