Inside The Temple: Lifting The Curtain on The Fed
By John Persinos
Federal Reserve monetary policy has been a major financial story for the past few years. Later today, the central bank's Federal Open Market Committee (FOMC) is expected to announced that it is yet again keeping its benchmark rates steady in a continued effort to fight inflation.
Whoever happens to be in charge of the Fed dominates our lives, like a demi-god. During his press conference today, Fed Chair Jerome Powell will likely once again prove that he has the power to move markets.
Of course, many investors remain afraid that the Fed's policies will tip the economy into a recession.
Recent data indicates that the Fed's policies are finally starting to work, and that inflation is beginning to cool.
As the following chart shows, the fed funds rate currently stands at 5.33%.
The new targeted rate range is between 5.25% and 5.5%. T
These Fed-related events are transparent and public, garnering plenty of coverage in mainstream news outlets. But let's lift the curtain on the more arcane aspects of the Fed. There's more to the Fed's policy moves than many investors realize.
Average investors are familiar with the Federal Reserve System, our nation's central bank, so it requires little in the way of explanation. But few people can actually tell you much about the Federal Open Market Committee (FOMC), the Fed's monetary policy arm, aside from the fact that it sets the federal funds rate.
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