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Fed: What Do Bank Stock Returns Say About Monetary Policy Transmission?
August 05, 2025
WASHINGTON, Aug. 5 -- The Federal Reserve issued the following Fed Notes article by Paige Ehresmann, Juan M. Morelli and Jessie Jiaxu Wang:

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What Do Bank Stock Returns Say About Monetary Policy Transmission?

1. Introduction

In this note, we build on the factor-based asset pricing framework introduced in our companion piece, "Modeling Bank Stock Returns: A Factor-Based Approach" (Ehresmann, Morelli, and Wang, 2025), to examine the . . .

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