Understanding Financial Intermediation and Policy at the Federal Reserve
During my time at the Federal Reserve, I contributed to the organization’s broader mission of advancing economic research and informing policy decisions that promote full employment and stable inflation. Within the Financial Intermediation group, our work centered on understanding how financial intermediaries provide liquidity—either between firms or across time. My role focused on deepening the Fed’s understanding of the shipping freight futures market and how it reflects global trade and financial dynamics.
Exploring the Shipping Freight Futures Market
My project examined freight futures data from the Shanghai International Energy Exchange. I began by cleaning and organizing this dataset, then developing a Stata pipeline to compare spot and futures prices, open contracts, and volatility indicators. Through this process, I collected complementary data on global and shipping-specific volatility, visualized trends, and conducted regression analyses to assess the relationships between spot and futures prices.
The analysis extended to modeling basis risk using local projection models and linking futures risk to real-world shipping volatility and trade patterns out of Shanghai. Ultimately, the goal was to construct a measure of shipping freight risk—one that captures how futures prices encode the expectations of carriers, exporters, and importers about future price movements. This research supported an academic paper exploring the predictive power of freight futures in understanding global market risks.
Learning from the Federal Reserve Community
The Federal Reserve plays an essential but often invisible role in the functioning of the American economy. Beyond its well-known responsibilities—such as supervising banks and conducting open market operations—it also carries out research that underpins evidence-based policy. Through my experience in the research division, I gained a clearer view of how the Fed integrates both the “real” side of the economy (inflation and employment) and the financial side (asset prices and regulation). I came to appreciate how this work quietly contributes to stability and consumer welfare across the nation.
Personal Growth and Reflection
The LiA experience taught me the value of consistency, focus, and technical precision. I realized that working hard is not only about effort but also about maintaining attention to detail and following through with discipline. The project reinforced how much I value having specialized technical skills that allow me to build tangible outputs and contribute meaningfully to research.
Connecting Research, Policy, and Global Impact
This experience aligns closely with my academic and career goals. Working alongside Professor Barrett and at the New York Fed deepened my understanding of how research and policy can drive large-scale, positive change. It strengthened my commitment to using data-driven methods to inform decisions that improve lives—an essential perspective for anyone aspiring to be a global change leader.