Translating the “Fed Speak”

Most people have heard about the Federal Reserve, but I’ve found that few understand the many roles it plays in the overall economy over the years.

The Fed makes headlines every few weeks by updating investors on what’s going on with interest rates. Most recently, the Fed said it’s prepared to raise interest rates next year to help manage our economy.

But some parts of the Fed’s job can be a bit of a head-scratcher. For example, did you know the Fed also is responsible for overall employment?

Part of my job is keeping an eye on the Federal Reserve. The Fed’s Board of Governors has eight regularly scheduled meetings a year (others, as needed), and when the two-day event ends, the Fed Chair updates the country on the economy. In the weeks that follow, Fed governors often schedule speeches to help clarify the Fed’s position on interest rates, inflation, and employment.

So if the Fed creates a headline that you don’t understand, please give me a call. I’ll help you translate the “Fed speak.

 

 

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