Central bank interventions predict biweekly interest rate volatility in the U.S. market.
The article examines how the Federal Reserve's actions affect the volatility of interest rates in the U.S. money market. By creating a model that includes central bank interventions and reserve requirements, the researchers found that changes in target rates and intervention procedures impact the federal funds rate's volatility. The study suggests that the Federal Reserve's actions can influence the stability of interest rates in the market.