New Investment Findings from Hamilton College Outlined (Stock Returns of Federal Reserve Officials): Investment

2025 NOV 27 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Investigators publish new report on Investment. According to news reporting from Clinton, New York, by NewsRx journalists, research stated, “This paper examines the trading behavior of members of the Federal Reserve’s Federal Open Market Committee (FOMC). First, we calculate the financial market returns of FOMC members relative to the overall market and examine if there is any evidence of abnormal returns.”

The news correspondents obtained a quote from the research from Hamilton College, “Second, we test whether FOMC members exhibit evidence of market timing around monetary policy announcements. We do not find any evidence that FOMC officials select securities that earn abnormal returns. However, our results regarding market timing are mixed.”

According to the news reporters, the research concluded: “Though we do not find any evidence of security selection or portfolio rebalancing with respect to monetary policy decisions, we do find that stock sales by FOMC officials are typically succeeded by negative returns in the overall stock market.”

This research has been peer-reviewed.

For more information on this research see: Stock Returns of Federal Reserve Officials. European Journal of Political Economy, 2025;90. European Journal of Political Economy can be contacted at: Elsevier Science Inc, Ste 800, 230 Park Ave, New York, NY 10169, USA. (Elsevier - www.elsevier.com; European Journal of Political Economy - http://www.journals.elsevier.com/european-journal-of-political-economy/)

Our news journalists report that additional information may be obtained by contacting Cody Couture, Hamilton College, Clinton, NY, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.ejpoleco.2025.102739. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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