45 minutes until the Fed's interest rate decision!
Now let's be more detailed and in simple words.
What is the Fed anyway?
The US Federal Central System serves as the country's central bank.
The Fed rate is the interest rate at which banks lend to each other.
Why is this rate needed?
This is one of the types of adjustment of monetary policy (based on changes in the economy). The main thing is that it affects the cost of credit money.
The logic is this: the lower the rate, the cheaper the money, the higher the level of consumption. Entrepreneurs are increasing production, hiring more employees, and the unemployment rate is decreasing. At the same time, the inflation rate is rising.
The same goes the other way around if the rate is higher.
Now I observe that forecasts are mainly that the rate will remain unchanged. If so, then this is not a bad bullish signal for local growth. After the recession. As stated in my previous post.
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