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Silifat8677
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The federal fund rate is the interest rate in the United States and stood as a paramount factor in currency valuation in a nation. It is highly correlated with the economic outlook because its changes can affect both inflation and recession.
Ahead of the Federal Oder Market Committee (FOMC) meeting on the monetary policy review today by 7 pm (GMT + 1), the US Dollar experienced a mixed performance but resolved and it’s gaining with acceleration to the upside.
From inception, the federal reserve has used the Fund rate as its core monetary policy tool to achieve its policy goals and objectives. The goals are geared towards enhancing economic conditions that ensure price stability (inflation control) and maximum employment.
Currently, inflation is hitting hard at a 5.4% multi-year high and the cost of goods and services keep sky-rocking. This is posing a big threat to the economy, though there is a hitting debate that the inflation is transitory and will likely normalize in the near term. Supply chain disruption and chip shortages is also a big driver of hiking prices.
Unfortunately, the job market is still thriving below the pre-pandemic state but the recovery steadies.
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