In the News

Title

How Does Fed Policy Influence Financial Markets?

Authors

CFA Institute

Document Type

Article

Publication Date

6-29-2015

Abstract

Everyone knows that Federal Reserve policy has an effect on security returns. But did you know that small value stocks returned nearly 40% more during periods of expansive monetary policy than during periods of restrictive policy? That’s the kind of data uncovered by three charterholders — Robert Johnson, CFA, Gerald Jensen, CFA, and Luis Garcia-Feijoo, CFA, CIPM — in research leading to their book Invest with the Fed, published in March 2015 by McGraw-Hill.