How the Fed Moves Markets (eBook)

Evan A. Schnidman and William D. MacMillan founded Prattle, a text analytics company, to showcase their novel methodology and innovative financial data on central bank communications. CEO Schnidman holds a PhD from Harvard University, USA, and has extensive experience in finance and political economy. CTO MacMillan holds a PhD from the University of Michigan, USA, and has substantial experience as both a professional statistician and a corporate data scientist.

Cover 1
Half Title 2
Title Page 4
Copyright Page 5
Table of Contents 6
List of Figures and Tables 8
Foreword 10
Introduction 12
PART I Emergence and Evolution: The Story of the Fed 17
1 Origins: From Chaos to Structure 18
2 Independence: Wars, Depression, and Politics 26
3 Centralization: ThTh e Rise of Technocracy 40
4 Transparency: Data Meets Democracy 48
PART II Fed Watching: Sentiment Analysis and Data-Driven Investing 58
5 The Briefcase Watch: Fed Watching at Its Finest? 59
6 Data-Driven Fed Watching: Comprehensive, Unbiased, and Quantitative 67
7 Fixed-Income Investing: Fed Sentiment Drives Bonds 76
8 Equity Market Investing: Macro Matters 85
9 Forecasting Policy: Market Response to Fed Communication Trends 95
10 FOREX Investing: Central Bank Sentiment Data across the Globe 105
PART III Global Monetary Policy: Analyzing Central Banks around the World 118
11 ECB Sentiment: Decoding a Complex Monetary Union 119
12 BOE Sentiment: ThTh e Origin of Modern Central Bank Communications 130
13 BOJ Sentiment: Monetary Clues in Lost Decades 140
14 RBA Sentiment: Australia as a Proxy for China 150
15 Global Sentiment: International Central Bank Transparency 161
Conclusion 184
Bibliography 190
Index 197