What are the FOMC Meeting Minutes?
The FOMC stands for Federal Open Market Committee, which determines how the US monetary policy should be altered. This Meeting Minute is a report which contains details on discussions held during the previous meeting about the country’s monetary policy. Investors closely watch the report as it is known to provide indications of how the committee may react going forward.
Why is it important to the currency?
The Federal Reserve’s monetary policy plays a significant role in the pricing of the US Dollar as the interest rate being paid to investors can increase or decrease demand. If the report holds signs of interest rates rising, it may prompt more investors to consider the Dollar.
Why is it important to the Stocks?
As mentioned above, the FOMC Meeting Minutes can indicate how interest rates may change within the coming months. As a result, it can affect both the US Dollar and US equities. US Equities include individual stocks and indices such as the NASDAQ.
Indications of higher interest rates can pressure the price of the stock market. Talk of lower interest rates may significantly support the stock market as lower interest rates provide a stronger foundation for economic growth. This is because lower interest rates create more disposable income, higher consumer demand and lower company debt fees.