The Federal Reserve, through its monetary policy, controls federal funds rate by making changes reserve balances available to the banking system. Thus change in monetary policy most directly influences day to day operations of banks. In a recent study Bernanke and Kuttner (2005) examine monetary policy effect on equity prices. They show that equity market reaction comes from the unanticipated component of the monetary policy action. Bernanke and Kuttner (2005) argue that policy makers try to modify economic behavior by affecting the asset prices.