Hurricane forecasting has ‘significant effects’ on financial markets – Fed

A satellite view of a hurricane

Improvements in hurricane forecasting could have “economically significant effects” on financial markets, a paper published by the Federal Reserve finds.

Mathias Kruttli and co-authors investigate option and equity market responses to uncertainty surrounding extreme US weather events and the subsequent economic impact. The authors sample a period from 2007–17.

They find equity options of firms exposed to hurricane events exhibit an increase in volatility of 5–10% in the aftermath of the event

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account