President Trump lets his thoughts be known through Twitter and those tweets can have a direct impact on the economy and interest rates, according to Clever Real Estate.
The president averages nine tweets per day and sent over 13,000 during his time in office. Often, those tweets get aimed at government organizations and they have economic ripple effects. When
On the flip side, 10-year Treasury yields close an average of 0.13 points lower with each additional tweet about the Fed. Since 15- and 30-year fixed mortgage rates
The National Bureau of Economic Research verified this correlation
"These dynamic effects indicate that the tweets do not simply affect expectations about the timing of changes that markets were already anticipating, but instead move market expectations about the stance of monetary policy," NBER said in its report.
Clever gathered and analyzed Trump's tweets from Nov. 1, 2016 to Nov. 24, 2019. A linear regression model was then used to draw the relationships between the daily close values of stocks and Treasury yields and tweet frequencies and sentiments.