Federal Reserve's Date-Based Guidance Shifts Investors' Views, Boosts Economic Confidence.
The Federal Reserve used date-based guidance to boost the economy between 2011 and 2012. Some say it worked by showing a weak economy, not by changing policy. The study looked at how this guidance affected investors' views of the Fed's actions. They found that using interest rate options, the guidance did change how investors saw the Fed's plans. This change was significant and had a real impact on how investors thought the Fed would react to economic news.