Monetary Policy Volatility, Measured

Media and markets tomorrow will train their focus on the FOMC meeting and the growing challenges that intensifying inflation creates for central banks. But fixed income markets, equity valuations, and FX markets will also be looking past the transitory (forgive the reference) press conference. They will be trying to establish a net present value related to potential future risks.

In this context, waiting until the next rate setting meeting can seem like an eternity.

Markets need far more robust mechanisms to spot technical policy shifts as they appear in the public eye. PolicyScope data can help. Please meet macroVS1.

Our long-time readers will remember that at the onset of the pandemic we began generating data from central bank (and other policymaker) actions to provide support to the economy. We discovered in the process that we have a highly curated, accurate, and valuable set of quantitative momentum and language data that capital markets can use to support stronger, more accurate decisions.

With the pandemic's acute phase waning last autumn, we reorganized and expanded our data ingestion processes to track more comprehensively the full range of issues that contribute to monetary policy decisions.

Capital markets require a minimum of three years historical data before they will use external data within systematic trading and risk pricing frameworks. We know this.
So macroVS1 is best used by research directors, investment analysts, and a broad range of sophisticated strategists like chief economists.

The data has been available to our V3 Bloomberg Terminal users since February. Today, we are making available additional delivery mechanisms (API) which provide users with considerable customization options.