Wednesday, March 30, 2011

Breakdown of How Much Fed Officials that Move the Markets

Macro Economic Advisers LLC has come out with a study of which Fed officials have the most impact on markets. Not surprisingly, Fed Chairman Ben Bernanke leads the pack.

Macro has awarded the I Moved Markets award to Bernanke, for having the largest effect among FOMC members on markets.

Macro also gives him the Power Player of the Year Award for largest impact per speech among FOMC members.

The Market Neutrality Award was given to Fed vice-chairman Janet Yellen. She moved interest rates bi zro basis points.

Below is a Macros chart which shows for each FOMC member, the sum of the absolute value of the impact of each of his or her communications with the public. Chairman Bernanke was the clear winner in this category: His speeches and interviews moved the two-year Treasury yield roughly 50 basis points last year. St. Louis Fed President Bullard was not far behind, with approximately 45 basis points, but note that the impact of the Chairman’s semiannual testimony on the Monetary Policy Report to the Congress is analyzed separately. If included, the monetary policy testimonies would further amplify the Chairman’s dominance.

Click on chart for clearer view

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