It’s one of the most important events on the economic calendar. Learn about the markets it impacts in our interactive widget below.
The Federal Reserve interest rate decision is a key economic event that sets the U.S. federal funds rate, influencing borrowing costs, inflation, and overall market activity.
Announced by the Federal Open Market Committee (FOMC), this decision is based on a comprehensive analysis of economic indicators, including inflation rates, employment levels, and GDP growth.
For CFD traders, the Fed’s decision can create significant volatility in markets, particularly in currency pairs, stock indices, and commodities linked to U.S. economic performance.
Rate hikes generally indicate efforts to control inflation, making borrowing more expensive and potentially strengthening the dollar. Conversely, rate cuts aim to stimulate economic growth, often weakening the dollar and impacting global markets.