The Federal Open Market Committee (FOMC) meeting of the US Federal Reserve began on June 11, 2024 and will conclude on June 12, 2024. This meeting is crucial for the financial markets as the committee will discuss the economic outlook and decide on the future course of monetary policy.
Key points to be noted:
There is an expectation that the Fed will maintain the current interest rates. Meanwhile, the focus will be on the committee’s projections and statements regarding future rate cuts.
Recent data on inflation and job growth will be important factors influencing the Fed’s decision.
US Federal Reserve Meeting Decision’s can Impact US Dollar Value:
The outcome of the meeting could significantly impact the US Dollar Index (DXY). If the Fed signals a potential rate cut, it might weaken the dollar. Conversely, a hawkish stance could strengthen the dollar.
The Fed’s decisions can have a significant impact on value of the U.S. dollar. For example, if the Fed increases interest rates, the demand for dollars will increase, this may cause the value of the dollar to rise.
As we know, the Fed plays a critical role in maintaining the value and stability of the U.S. dollar. It does this by:
US Fed can increase or decrease the supply of dollars in the economy by buying or selling U.S. government securities.
The Fed can influence the demand for dollars by setting interest rates.
The Fed can intervene in foreign exchange markets to buy or sell dollars to influence the exchange rate.
Source: federalreserve.gov