FOMC Meeting (Federal Open Market Committee): Rate announcement
The meeting of the US Federal Bank representatives, held 8 times a year. The decision about the prime interest rate is published during each meeting (around 14:15 EST). The FED (the Federal Reserve of USA) is responsible for managing the US monetary policy, controlling the banks, providing services to governmental organizations and citizens, and maintaining the country’s financial stability. There are 12 Fed regions in the USA (each comprising several states), represented in the Fed committee by regional commissioners.
The rate of interest on a currency is in practice the price of the money. The higher the rate of interest on a currency, the more people will tend to hold that currency, to purchase it and in that way to strengthen the value of the currency. This is very important indicator affecting the rate of inflation and the very big market mover. There is great importance to the FOMC announcement, however – the content of the deliberation held in the meeting (and published 2 weeks afterwards) is almost as important for the market players.
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