Fed Model
A model thought to be used by the Federal Reserve that hypothesizes a relationship between long-term treasury notes and the market return of equities. Investopedia Says:
The Fed doesn't endorse this tool. In fact, it was named the"Fed model" by Prudential Securities strategist Ed Yardeni.
This model believes that returns on 10-year treasury notes should be similar to the S&P 500 earnings yield. Differences in these returns identify an over-priced or under-priced securities market. Related Terms:
Alan Greenspan
Earnings Yield
Fed
Financial Modeling
Loose Credit
Standard & Poor's 500 Index - S&P 500
Sweet Spot
Tight Monetary Policy
Treasury Note |