The post Attentive to risks on both sides of dual mandate appeared on BitcoinEthereumNews.com.

Federal Reserve Chairman Jerome Powell explains the decision to leave the policy rate, federal funds rate, unchanged at the range of 5.25%-5.5% and responds to questions in the post-meeting press conference. Key takeaways “The labor market has come into better balance.” “We are maintaining our restrictive stance.” “We are attentive to risks on both sides of the dual mandate.” “Growth of consumer spending remains solid but has slowed.” “Investment in the housing sector stalled in the second quarter.” “The unemployment rate remains low.” “Data suggests the labor market has returned to where it was on the eve of the pandemic.” “A broad set of labor market indicators show it is strong but not overheated.” “Inflation remains somewhat above 2% goal.” Fed FAQs Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on…

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Filed under: News - @ August 1, 2024 12:20 am