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TRUMP, TWITTER, AND TREASURIES
Author(s) -
Tillmann Peter
Publication year - 2020
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/coep.12465
Subject(s) - economics , business , econometrics , financial economics
After appointing Federal Reserve Chairman Powell, President Trump put pressure on the Fed to cut interest rates. We show that, on average, a statement from Trump on the Fed led to lower long‐term interest rates, consistent with expectations of lower expected future short rates. However, the impact of Trump's statements declined over time. ( JEL E52, E43, E32)