The US Federal Reserve is the de facto central bank of the world because the US Dollar comprises 88% of all global foreign exchange transactions. Fed decisions dictate global liquidity conditions.
Course 09 · Lesson 06
The Federal Reserve
~9 min read•Lesson 06/14
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The Fed has a dual mandate: Price Stability (2% inflation) and Maximum Employment.
FOMC Dot Plot projections outline multi-year interest rate trajectories.
KEY TERMS
FOMC
Federal Open Market Committee: the 12-member Fed policy decision body.
Dot Plot
The chart published quarterly showing where each FOMC member expects rates to be over the next 3 years.
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