If your hunch is that stock returns often are strong on FOMC announcement days, you're right:...

|By:, SA News Editor

If your hunch is that stock returns often are strong on FOMC announcement days, you're right: Two NY Fed economists find that stocks typically rise significantly in the 24 hours prior to FOMC announcements, but move little after the decisions are released. The study says 80% of the equity premium over Treasurys during 1994-2011 was earned solely on FOMC announcement days.