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MONETARY POLICY |
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Monetary Policy for the United States
is under the purview of the Federal
Reserve System, which serves as its
Central Bank tasked with providing a
safe, flexible, and stable monetary
and financial system through its Board
and component parts the 12 Federal Reserve
Banks.
Formulating these policies is the Federal
Open Market Committee (FOMC), which
is the most important monetary policy,
making body for the Federal Reserve
System, tasked with the formulation
of policies that would promote economic
growth, full employment, price stability,
and sustainable international trade
and balance of payments.
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KEY PERSOANLITIES AND INSTITUTIONS |
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George Bush, Jr., President
of the United States
Members of the FOMC
: Alan Greenspan, Board of Governors,
Chairman
: William J. McDonough, FRB-New York,
Vice Chairman
: Roger W. Ferguson, Jr,. Board of Governors,
: Edward M. Gramlich, Board of Governors
: Thomas M. Hoenig, FRB-Kansas City
: Edward W. Kelly, Jr., Board of Governors
: Cathy E. Minehan, FRB-Boston
: Michael H. Moskow, FRB-Chicago
: William Poole, FRB-St. Louis
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Alternate Members
: Jerry L. Jordan, FRB-Cleveland
: Robert D. McTeer, R., FRB-Dallas
: Anthony M. Santomero, FRB-Philadelphia
: Gary H. Stern, FRB-Minneapolis
: Jamie B. Stewart, Jr., First Vice
President, FRB-New York
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US Treasury
: Paul H. O'Neill, Secretary
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INTEREST RATES |
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The key barometer for US interest
rates is the Federal Funds Rate, a misnomer
this is actually the rate of interest
which banks charge one another for overnight
loans. This is usually followed by the
market because of its value in assessing
tightness of credit market conditions
in the banking system and more importantly
for FX the stance for monetary policy.
Another key rate to watch is the Discount
Rate, which is the interest that the
Fed charges on banks for discount loans
usually made in the face of liquidity
problems. It is important to note that
while the discount rate is lower than
that of the Fed funds rate banks usually
use this as a last recourse due to its
implications on their financial stability.
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KEY EVENTS AND REPORTS TO WATCH |
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Key US reports usually followed by
market players are
: CPI
: Employment Cost Index
: Employment Report
: GDP National Association of Purchasing
Manager's
: Producer Price
: Retail Sales |
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