We estimate the reaction of the hotel and restaurant industries to the monetary policy actions of the Federal Reserve in the US. We find that the portfolios of hotel industry stocks react strongly to the unexpected changes in the Federal Funds Target Rate. Specifically, for a hypothetical...

During the last financial crisis, what should the Federal Reserve (Fed) have done after credit dried up, creating a liquidity crisis even for borrowers with sterling credit and good collateral? The conventional answer is that during a market-wide liquidity crisis the central bank should act as a...

In response to the financial crisis that began in 2007, the Federal Reserve ('Fed') initiated a series of ad hoc deals (for Bear Stearns and AIG) and new lending facilities that benefited a variety of other nonbank financial intermediaries. Through these deals and programs the Fed became a...