Fed’s Waller – November FOMC statement designed to signal potential step down to 50

Federal Reserve Governor Christopher Waller is a member of the Federal Reserve

Federal Reserve

The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the US while buttressing a financial system for the country. Its general duties are setting and guiding monetary policy and overseeing effective economic operation, both of which are at the service of the public interest. How the Federal Reserve Affects Forex The Fed can materially impact the US dollar by virtue of the interest rate it sets, measured by the Board of Governors of the Federal Reserve System. The current interest rate and the expectations of future interest rate changes can influence the value of the US Dollar. For example, if traders anticipate a change in interest rates based on announcements from the Board of Governors, this can cause the US dollar to appreciate or depreciate in value against other currencies. should keep track of developments within the central bank. Ultimately, the Federal Open Market Committee (FOMC) holds eight regular meetings per calendar year, where policies and interest rates are discussed and agreed upon. The best course of action is to keep up with news ahead of these meetings as a forex trader to make predictions about interest rates, and whether to buy or sell the US dollar.

The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the US while buttressing a financial system for the country. Its general duties are setting and guiding monetary policy and overseeing effective economic operation, both of which are at the service of the public interest. How the Federal Reserve Affects Forex The Fed can materially impact the US dollar by virtue of the interest rate it sets, measured by the Board of Governors of the Federal Reserve System. The current interest rate and the expectations of future interest rate changes can influence the value of the US Dollar. For example, if traders anticipate a change in interest rates based on announcements from the Board of Governors, this can cause the US dollar to appreciate or depreciate in value against other currencies. should keep track of developments within the central bank. Ultimately, the Federal Open Market Committee (FOMC) holds eight regular meetings per calendar year, where policies and interest rates are discussed and agreed upon. The best course of action is to keep up with news ahead of these meetings as a forex trader to make predictions about interest rates, and whether to buy or sell the US dollar.
Read this Term Board of Governors. The governors vote at each Federal Open Market Committee.

Waller is speaking on his economic outlook before the Australasia Conference, in Sydney, Australia

Earlier:

Fed’s Waller dismisses US CPI report as ‘just one data point’, markets ‘way out in front’

More:

  • The FOMC statement in November was designed to signal a potential step down to 50 basis points. “We knew the markets were going to jump for joy.” So the Fed used Powell’s press conference to “drive the point home” that it’s the ultimate level for rates that matters.
  • US housing markets “will be okay”
  • Household balance sheets remain in good shape
  • Was always going to be a communications challenge to signal slowdown in the pace of hikes, fed “is not softening”
  • Signal was to pay attention to the endpoint not the pace of rate increases, and until inflation
  • Fed keeping an eye on the balance sheet, don’t want to “crush” holdings in a way that will cause problems in markets
  • A “benchmark” target may be about 8 to 10 percent of GDP

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