Monetary Policy Stance Is Tighter than Federal Funds Rate
The Federal Reserve’s use of forward guidance and balance sheet policy means that monetary policy consists of more than changing the federal funds rate target. A proxy federal funds rate…
By monitoring the Federal Reserve’s statements and actions, investors can get a sense of where interest rates and the economy are headed, which can help them make strategic investment decisions.
Another interest rate hike from the Federal Reserve is on the way: Here’s how it may affect you
This week, the Federal Reserve will likely raise rates for the sixth consecutive time to combat inflation, which is still running at its fastest pace in nearly 40 years. The U.S. central…
A Former Fed Trader Predicts Ugly Times as the Central Bank Shrinks Its Balance Sheet
Now, with inflation rampant, the Fed is unwinding this liquidity via a process known as quantitative tightening, or QT. In June, the central bank started to shrink its portfolio by…