Federal Reserve Headquarters
Federal Funds Rate
FED to Keep Rates Unchanged As the Economy Has Weakened
Starts Wednesday, June 19, 2019 at 18:00
Updated Wednesday, June 12, 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 December. In fact, the FED has suggested that they will slow down the hike pace this year and after the really weak economic data we have seen in recent weeks, now the markets are expecting a rate cut before another hike, but that's expected for the July meeting. So, this won't have much impact on the USD, while waiting for the press conference from Chairman Powell. 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.