Resumen de Federal Reserve menetary policy and US hospitality stock returns
This study examines the impact of the Federal Reserve (Fed) monetary policy on US hospitality stock returns. Specifically, this research paper investigates the stock performance of US hospitality firms under different Fed monetary policy regimes. Hospitality companies include gambling firms, lodging companies and restaurants. Changes in the discount rate and federal funds rate are used to measure shifts in the Fed monetary policy and to classify the full monetary policy period as either a restrictive or an expansive monetary policy environment. An expansive monetary condition is a period with a decrease in the discount or federal funds rate; a restrictive monetary environment experiences an increase in the discount or federal funds rate. Empirical test results reveal that the influence of the two monetary policy indicators on hospitality stock returns varies to a great extent. The stock returns of US restaurants are related significantly to changes in the federal funds rate.
However, changes in the discount rate generally have no strong impact on US hospitality stock returns.
