This week, the US equity market faced a series of tests. At 20:30pm, Beijing time, the May CPI data for the USA will be released! Next, May PPI data will be released on June 13 at 20:30pm. In addition, at 2:00 a.m. on June 13, the Fed will hold a closely watched meeting.
There may be less questions for mooers, for example: What signals will the US Fed hold information meeting send? What is the impact of the rise or fall on the market? What do CPI, PPI data look like? The beef sirens will add some dry goods knowledge to help them better understand their geography.
1. First understand the Fed: What does it do? How to do it?
The Federal Reserve is the central bank of the United States,It consists of three pillars: the Federal Reserve Board, the 12 Federal Reserve Banks, and the Federal Open Market Committee (FOMC)。 The Federal Reserve Board oversees the entire Federal Reserve System, with 12 Federal Reserve Banks scattered throughout the country, responsible for understanding the regional economy and reporting to the Board of Directors.
The members of the above two institutions together make up the Federal Open Market Committee (FOMC). The FOMC has two main responsibilities:One is the decision to shape the operation of the open market; the second is to decide by convention whether to raise or lower the federal funds rate (which is the rate increase or decrease we often hear).
After all, what is the purpose of the Fed? There are two main ones: achieve maximum employment and stable prices. How to achieve it? RelianceIn the “armory” of monetary policy...