Kevin Haysit, director of the American National Economic Council (NEC), revealed in an interview with CBS ‘CBS’ The Nation early Monday that he held regular meetings with Federal Reserve Chairman (Fed) Jerome Powell.
Additional fast food
She denied that these meetings were aimed at influencing interest rates, while emphasizing that Powell’s independence is respected, although it is still possible to express the views of the president.
Long -term benefits revenue has decreased, indicating a decrease of 40 basis points in treasury revenues for 10 years, it is a sign that the market expects a decrease in inflation.
Market reaction
The US dollar index (DXY) licks its wounds near a two -week decrease of 106.57, still a decrease of 0.07 % so far.
Fed questions and answers
The monetary policy in the United States is formed by the Federal Reserve (Fed). The Federal Reserve has two states: to achieve price stability and enhance full employment. Its primary performance to achieve these goals is to adjust interest rates. When prices rise very quickly and inflation is 2 % higher than the Federal Reserve goal, it raises interest rates, which increases borrowing costs throughout the economy. This leads to the most powerful USD (USD) because it makes the United States a more attractive place for international investors to stop their money. When inflation decreases to less than 2 % or the unemployment rate is very high, the Federal Reserve may reduce interest rates to encourage borrowing, which weighs on the green back.
The Federal Reserve (Fed) holds eight political meetings annually, as the FOOC Open Market Committee (FOMC) evaluates economic conditions and takes monetary policy decisions. FOMC attends twelve officials of the Federal Reserve-the seven members of the Governor, the President of the Federal Reserve in New York, and four regional regional presidential presidents, who serve for one year on a roundabout.
In extreme situations, the Federal Reserve may resort to a policy called quantitative mitigation (QE). QE is the process that the Federal Reserve increases significantly from the flow of credit in a suspended financial system. It is a non -standard policy scale used during crises or when inflation is very low. The preferred Federal Reserve during the great financial crisis was in 2008. It includes the printing of the Federal Reserve more than dollars and their use to buy high -quality bonds from financial institutions. QE usually weakens the US dollar.
The quantitative tightening (QT) is the reverse process of QE, as the Federal Reserve stops buying bonds from financial institutions and the manager does not re -invest from mature bonds, to buy new bonds. It is usually positive for the value of the US dollar.
