A high-frequency approach is used to analyze the effects of President Trump’s tweets that criticize Federal Reserve on financial markets. Identification exploits a short time window around precise timestamp for each tweet. The average effect expected fed funds rate negative and statistically significant, with magnitude growing by horizon. also lead an increase in stock prices decrease long-term...

Estimates of instrumental rules can be utilized to describe central bank's behavior and monetary policy stance. In the last decade, considerable attention has been given to time-varying parameter (TVP) specification of monetary policy rules. Constant-parameter reaction functions likely ignore the impact of model uncertainty, shifting preferences and nonlinearities of policymaker's choices. This...

Central banks have long played a far larger role in policy-making than their legalmandates might imply. In recent years their power and influence have become even greater. Since the financial crisis, public banks around the world have taken on more direct responsibilities for financial supervision and regulation, and pushed monetary policy to new limits in order to stimulate the global economy....