The impact of Federal Open Market Committee meetings on the market

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The Federal Whatisforexrebate cashback forex Committee is a branch of the Federal Reserve responsible for discussing What is forex rebate setting U.S. monetary policy They meet eight times a year (possibly more if needed) to discuss necessary policy changes Due to the impact of meeting dates on the market, most traders mark the economic calendar and as these meetings approach There will always be widespread expectations that the meetings will be held in almost complete secrecy, with only five Fed chairs and seven Fed governors allowed to attend A press conference will be held immediately after the meeting to announce the main meeting results and actions taken by the agreement (if any) A more detailed full transcript of the meeting will be published in the next three weeks For the results of the meeting, the market is likely to react with volatility The reason for the sharp market volatility in bestforexrebate forexrebatenetwork potential changes in interest rates could cause markets to rise or fall as a response to a comprehensive analysis of U.S. economic data, the U.S. Federal Open Market Committee decides whether any intervention is needed to raise or lower interest rates, depending on the U.S. money supply and whether prices need to stabilize the Feds goal is to maintain an annual inflation rate of 2% therefore, the conclusions reached at these meetings allow investors The Committee considers several factors, including but not limited to the unemployment rate, job growth, household spending and inflation itself. Open Market Committee, including: IndexesRising interest rates puts pressure on corporate and consumer spending, which in turn depresses stock pricesThis makes indexes particularly sensitive to the Federal Open Market Committees assessmentBond prices rise when bond rates fallConversely, bond prices fall when interest rates riseDollar currency pairsWhen interest rates rise, the value of the currency tends to increaseThis is because high interest rates are extremely attractive to foreign investors Due to the inverse relationship between the dollar and gold, a weaker dollar can effectively boost the price of gold Another important factor to consider is that gold is considered a safe-haven asset If a Federal Open Market Committee statement triggers negative speculation about the U.S. or global economy, the attractiveness of gold could rise significantly Intraday traders with a deep understanding of market sentiment Traders, may look for opportunities in the speculation surrounding the Federal Open Market Committee meeting If there are any unexpected disclosures and subsequent volatility, traders can not only protect their capital, but may even profit if prepared to react quickly

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