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Zavodny, Madeline
Ginther, Donna K.
Year of Publication: 
Series/Report no.: 
Working Paper 2003-3
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.
Business forecasting
Economic conditions - United States
Federal Reserve System
Economic indicators
Financial markets
Document Type: 
Working Paper

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