How The President’s Trade Tweets Made Fed Cuts A Self-Fulfilling Prophecy

Late last month, an academic study by Duke’s Francesco Bianchi and the London Business School’s Howard Kung and Thilo Kind, revealed what the trio described as "market-based evidence that President Trump influences expectations about monetary policy". Bianchi, Kung and Kind analyzed the president's monetary policy tweets using a high-frequency event study and found that “the average effect of these tweets on the expected fed funds rate is strongly statistically significant and negative,