Meet the Fed | TradeLiga

The lesson in full

A meeting in Washington can move your currency, your phone's price and loan rates worldwide. Meet the Fed: the Federal Reserve, the US central bank.
Its two goals, the “dual mandate”: maximum employment and stable prices, which it defines as inflation of 2% a year.
Its rate committee, the FOMC, meets eight times a year. The decision lands at 2:00 p.m. New York time; the Chair's press conference starts 30 minutes later.
Real example: in 2022–23, to fight the highest inflation in 40 years, the Fed raised its rate from near 0% to 5.25–5.5%, its fastest hikes since the 1980s.
The ripple: the Fed raises rates → the US dollar often strengthens → money can leave emerging markets, and their currencies and stocks can fall.
Common mistake
Mistake: only reading the decision. Markets often move more on what the Chair hints about the next meetings.
Key takeaway
The Fed sets the world's most important interest rate. Rates up: stronger dollar, tighter money. Rates down: the opposite.

The Fed is... The US central bankThe Federal Reserve sets US interest rates and supervises banks.
When the Fed raises rates, the dollar usually... StrengthensHigher US rates make dollar savings and bonds pay more, which attracts money into dollars.
How often does the FOMC hold scheduled meetings? Eight times a yearRoughly every six weeks. It can also hold emergency meetings in a crisis.
The Fed's inflation target is... 2% a yearA little inflation is seen as healthy; 2% is the target of many central banks.