Federal Reserve Headquarters
Federal Funds Rate
FED Expected to Cut Again to 2.00%
Starts Wednesday, September 18, 2019 at 18:00
Updated Wednesday, September 18, 2019
The Federal Reserve FED has been on the forefront of normalization of the monetary policy. It started hiking interest rates back in December 2015 and in the last two years it has hiked interest rates eight times. The markets are not expecting another rate hike this month since the last one was back in March. The FED cut interest rates by 25 bps in the last meeting in July 31 and has suggested that they might cut again, so markets have priced in a 100% chance of a rate cut in this meeting, which would bring rates back to 2.00%. Please follow us for live coverage of this event by experienced analysts.
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About Federal Funds Rate
The U.S. Federal Reserve (FED) is the central banking authority of the United States. It is comprised of members of the Board of Governors of regional U.S. FED branches. The FED meets periodically every five to eight weeks throughout the year to discuss the state of the U.S. economy. Employment, growth, inflation and the lending environment are topics formally addressed at FED conferences.The FED is commissioned with the task of managing U.S. monetary policy. This includes the setting and revising of interbank lending rates for the USD. In order to accomplish this objective, FED members vote on whether rates are to be raised, remain unchanged, or lowered at each meeting. A decision is then reached and announced to the public.A rate "hike" or raise, is a signal of tightening monetary policy amid inflationary pressures. Rate hikes typically strengthen the USD against other major global currencies. Conversely, holding rates steady or cutting rates is a signal of “dovish” policy. These actions commonly lead to the USD weakening and devaluation across the majors.