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breaking news Fed’s Bostic says he will continue to work to push inflation towards 2%


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The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks around the world, the Fed is responsible for monetary policy, in this case in the United States. The Fed is one of the most watched and followed entities for forex traders, given its large impact on the US dollar. Originally founded in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the United States while strengthening a financial system for the country. Its general functions are to set and guide monetary policy and oversee the efficient functioning of the economy, both of which serve the public interest. by the Federal Reserve Board of Governors. The current interest rate and 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 may cause the US dollar to appreciate or depreciate against other currencies. Forex traders should always be aware of Fed meetings and announcements and should follow 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 stay on top of the news ahead of these meetings as a forex trader to make predictions on 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 around the world, the Fed is responsible for monetary policy, in this case in the United States. The Fed is one of the most watched and followed entities for forex traders, given its large impact on the US dollar. Originally founded in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the United States while strengthening a financial system for the country. Its general functions are to set and guide monetary policy and oversee the efficient functioning of the economy, both of which serve the public interest. by the Federal Reserve Board of Governors. The current interest rate and 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 may cause the US dollar to appreciate or depreciate against other currencies. Forex traders should always be aware of Fed meetings and announcements and should follow 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 stay on top of the news ahead of these meetings as a forex trader to make predictions on interest rates and whether to buy or sell the US dollar.
Read this term President Raphael Bostic spoke on US television, CBS’ “Face the Nation”:

  • Inflation
  • Reduce the gap between supply and demand
  • Demand begins to decline and this will eventually pay dividends in inflation levels
  • Many other indicators other than GDP show positive momentum in the economy
  • We need a slowdown, there’s no doubt
  • There are scenarios in which we can avoid the “deep and deep pain”
  • There will likely be job losses
  • There is a very good chance that job losses will be lower than what we have seen in the past
  • 2% is our target and I will continue to work to move inflation in that direction
  • I always hear companies say they don’t expect to have to lay people off anytime soon.
  • We know some bottlenecks are starting to ease
  • Business leaders today say it’s a little easier to find workers than a few months ago

Headlines via Reuters.

Bostic gives indications on the reduction of bottlenecks in the American economy. the chain of reasoning will be that this will lead to the end of the cycle of Fed rate hikes when inflation should be back in the target range. Bostic of course didn’t specify a time frame for that in those comments. More hikes are yet to come from the Federal Open Market Committee (FOMC).


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