Money for Nothing: Inside the Federal Reserve (2013)

Trader's Film Library #60 · People, money and institutions. The best introduction to the institution that moves your market.

Original title: Money for Nothing: Inside the Federal Reserve · Type: documentary · Created by: Jim Bruce · Usefulness for traders: ★★★★☆

What it's about

A documentary about the history and workings of the US Federal Reserve, with contributions from former Fed officials. Narrated by Liev Schreiber.

What it has to do with markets

For a US index futures trader, the Fed is one of the most important market participants. The film explains where rate decisions come from and why the market reacts so strongly to every word from the Fed chair.

Lessons for traders

• Fed decisions change the shape of the trading day (profile atlas #8: Fed decision day)
• the market reacts to the surprise relative to expectations (Macro and news)
• monetary policy works with a lag

What to watch out for

A documentary fairly critical of the Fed. Worth supplementing with other sources.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

← #59 The Ascent of Money · Film Library index · #61 Warren Buffett: Becoming Warren Buffett and Warren Buffett: How to Make a Fortune →

The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.