NEWS
I discussed Haddad, Moreira, and Muir's "Asset Purchase Rules: How QE Transformed the Bond Market" at the Advances in Macro-Finance Research conference in San Francisco in October. Slides available here.
I discussed Bowman, Huh, and Infante's "Balance-Sheet Netting in U.S. Treasury Markets and Central Clearing" at the Fed System Intermediation Conference in Chicago in September. Slides available here.
Here is a Fed Letter with Max Gillet on how financial conditions during the most-recent policy tightening cycle have compared to those in the past, accounting for differences in the length and pace of the tightening cycle. Most conditions tightened as much as or more than we would have expected based on historical experience. The main exception is credit spreads.
Stefania D'Amico and I have an updated version of "One Asset Does Not Fit All: Inflation Hedging by Index and Horizon." Comments welcome!
"Securities Financing and Asset Markets: New Evidence" is forthcoming in the Review of Finance.
I presented "Monetary-Policy Risk and Equilibrium Asset Prices" at the Western Economic Association International in July. Seung Kwak was the discussant. Slides available here.
Also at the conference, I discussed "Landlords as Lenders of Last Resort" by Nathaniel Pattison (slides here) and "Fed Transparency and Policy Expectation Errors" by Eric Fischer et al. (slides here).
"Monetary Policy and the Stock Market in the Covid Era" appeared in Economic Perspectives. The paper shows that the Fed's policy actions in 2020 - 21 boosted stock prices significantly by raising expected nominal profits, lowering risk-free rates, and compressing risk premia.