P-25 The Association between Open Market Operations and the S&P 500 Index from 2008-2010
Abstract
This research seeks to identify whether a relationship exists between Federal Reserve decisions via the Federal Open Market Committee and the equities market, and detail the specifics of that relationship. After the economic crisis, the Federal Reserve initiated a monetary policy to stimulate the economy known as Quantitative Easing, a strategy wherein the Fed buys securities, providing financial institutions with capital to spark economic growth. Throughout this research, I determine the outcome of the Fed’s role in the behavior of equities market by using Linear Regression. Essentially I hypothesize that the Fed’s Open Market Operations are related to S&P 500 index values from 2008-2010.
Location
Buller Hallway
Start Date
3-7-2014 2:30 PM
End Date
3-7-2014 4:00 PM
P-25 The Association between Open Market Operations and the S&P 500 Index from 2008-2010
Buller Hallway
This research seeks to identify whether a relationship exists between Federal Reserve decisions via the Federal Open Market Committee and the equities market, and detail the specifics of that relationship. After the economic crisis, the Federal Reserve initiated a monetary policy to stimulate the economy known as Quantitative Easing, a strategy wherein the Fed buys securities, providing financial institutions with capital to spark economic growth. Throughout this research, I determine the outcome of the Fed’s role in the behavior of equities market by using Linear Regression. Essentially I hypothesize that the Fed’s Open Market Operations are related to S&P 500 index values from 2008-2010.
Acknowledgments
J.N. Andrews Honors Scholar
Advisor: Alan Kirkpatrick, Accounting, Economics, and Finance