Fed’s Hammack: Reasonable to expect more disinflation
|Federal Reserve Bank of Cleveland President Beth Hammack argued on Thursday that while inflationary pressures have been easing, they have not yet reached the desired levels.
FOMC Interest rate decision (Fed) | News & Analysis
Fed goes for a 50 bps cut in first policy-easing step in four years
LATEST FED MEASURES TO BATTLE INFLATION
Fed’s Daly: The economy is clearly in a better place
|Federal Reserve Bank of San Francisco President Mary Daly, in a post on social media platform X, said that the economy is clearly in a better place, inflation has fallen substantially and the labor market has returned to a more sustainable path.
Fed's Daly: Rate cuts to resume, but policy rate remains dependent on inflation declines
|Federal Reserve (Fed) Bank of San Francisco President Mary Daly noted late Monday that while she expects the Fed to continue slowly easing interest rates lower in the coming quarters, the Fed is still maintaining a data-dependent approach.
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September decision review
Breaking: Fed lowers interest rate by 50 bps to 4.75%-5%
|The US Federal Reserve (Fed) announced on Wednesday that it lowered the policy rate, federal funds rate, by 50 basis points to the range of 4.75%-5% following the September policy meeting. Although the market forecast was for a 25 bps rate cut, there were growing expectations for a 50 bps reduction.
June decision review
Jerome Powell comments on rate outlook after keeping policy settings unchanged
|The US Federal Reserve (Fed) will announce monetary policy decisions following the June policy meeting and release the revised Summary of Economic Projections (SEP), the so-called dot plot, on Wednesday.
May decision review
Breaking: Fed leaves interest rate unchanged at 5.25%-5.5% as expected
|The US Federal Reserve (Fed) announced on Wednesday that it left the policy rate, federal funds rate, unchanged at the range of 5.25%-5.5% following the April 30 - May 1 meeting. This decision came in line with the market expectation.
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What's important about Federal Reserve’s monetary policy meeting?
With a pre-set regularity, a nation's Central Bank has an economic policy meeting, in which board members took different measures, the most relevant one, being the interest rate that it will charge on loans and advances to commercial banks.
In the US, the Board of Governors of the Federal Reserve (FED) meets at intervals of five to eight weeks, in which they announce their latest decisions. A rate hike tends to boost the local currency, as it is understood as a sign of a healthy inflation. A rate cut, on the other hand, is seen as a sign of economic and inflationary woes and, therefore, tends to weaken the local currency.
If rates remain unchanged, attention and also main news and analysis turn to the tone of the FOMC (Federal Open Market Committee) statement, and whether the tone is hawkish, or dovish over future developments of inflation.
What is the Fed?
The Federal Reserve System (Fed) is the central banking system of the United States and it has two main targets or reasons to be: one is to keep unemployment rate to their lowest possible levels and the other one, to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.
Fed official website, on Twitter and Facebook
How to trade the event?
- Do not rely on the Fed to determine the direction of the dollar in the coming months.
- The dollar tends to follow its predominant trend when the Fed starts to hike rates.
- There is no direct link between the Fed hiking rates and the usd falling. When a weak usd has coincided with a Fed hiking cycle, it has been falling for some time.
- Due to this, we may see a muted reaction to a potential Fed rate hike.
WHO IS FOMC'S CHAIRMAN?
Jerome Powell
Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in
February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will
expire January 31,
2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and
earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as
undersecretary of the Treasury
under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997
through 2005, Powell was a partner at The Carlyle Group.
Jerome Powell Fed's Profile and Wikipedia
The World Interest Rates Table
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.