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Economic Commentary

Are Successful Interventions Random Events?

From time to time, the United States enters the foreign exchange market in an attempt to influence the behavior of exchange rates. The objective may be to nudge an exchange rate more closely in line with some set of fundamentals or to dampen excessive volatility. Sometimes these interventions appear to be successful, and the dollar quickly reverses direction or moderates its movements. At other times, however, these interventions seem completely ineffectual.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Humpage, Owen F. 1996. “Are Successful Interventions Random Events?” Federal Reserve Bank of Cleveland, Economic Commentary 3/1/1996.