Discussion Paper

Monetary Policy Surprises and Monetary Policy Uncertainty


Abstract: In this note we find that after a given monetary policy surprise, primary dealers--key intermediaries in interest rate markets--tend to adjust their positions in the U.S. Treasury market and their exposures to interest rates more when the prevailing level of policy uncertainty is low than when it is high.

https://doi.org/10.17016/2380-7172.2176

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2018-05-18

Number: 2018-05-18