Intervening against the Fed

• 成果类型: Article
• 署名作者: Rodnyansky, Alexander; Timmer, Yannick; Yago, Naoki
• 署名单位: University of Cambridge; Federal Reserve System - USA; Federal Reserve System Board of Governors; University of Reading
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2026.104265
• 发表日期: 2026-05
• 页码: 104265
• 关键词: Foreign exchange interventions; Monetary policy spillovers; balance sheet channel; Exchange rates; dollar debt; MONETARY-POLICY MATTER; interest-rates; balance sheets; exchange-rates; MARKET; reserves; shocks; sales; TRADE

摘要

This paper studies the effectiveness and mechanism of foreign exchange interventions (FXIs) for mitigating US monetary policy spillovers. Without interventions, contractionary US monetary policy shocks trigger foreign exchange depreciations, raise risk premiums, and induce portfolio outflows, thereby reducing foreign stock prices. The stock prices of firms with US dollar debt decline significantly more, indicating a strong role for a balance sheet channel. However, intervening against the Fed stabilizes exchange rate depreciations, the risk premium, and portfolio flows. FXIs also disproportionately cushion the reduction in stock prices for firms with US dollar debt, muting the balance sheet channel of exchange rates.