Is to adjust the benchmark to market conditions.
In the financial markets, a series of event risks in particular with the Federal Reserve interest rate decision the most attention.
The Fed‘s interest rate decisions are made by the committee and are made public to guide markets.
When the Fed increases, cuts or leaves its benchmark interest rate unchanged, it has a significant impact.
The fed’s interest rate decision, divided into raising interest rates (interest rates) and cut interest rates (cut) the two: if the fed announced increases in interest rates, the increase in interest rates, for example, the federal reserve announced to raise interest rates by 25 basis points, the benefits for international investors consider, will choose to abandon assets, investment market, leading to the dollar in short supply, the dollar higher,.
At the same time, to some extent, this will lead to a decrease in U.S. exports and an increase in imports.
If the Fed announces a rate cut, it means that the United States has lowered its benchmark interest rate in order to increase exports, stimulate the market and accelerate the recovery.
Usually, only when the US economy is depressed or in the stage of decline, the Federal Reserve will cut interest rates to stimulate the US market, the interest rate will depreciate the dollar, the US domestic prices will rise, the cost of imports will increase, the cost of exports will be flat, so the US will increase the export of products.
