Created
: 2025.06.21
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Fed Monetary Policy Report: Policy well-positioned for what lies ahead
World FX news
Breaking news
Fed Monetary Policy Report: Policy well-positioned for what lies ahead
New
2025.06.21 00:15
2025.06.21 00:15
2025.06.21 00:15
In its Monetary Policy Report to Congress, published on Friday, the Federal Reserve said that inflation is somewhat elevated, while the job market remains in a solid shape, per Reuters.
Key takeaways
"Some early signs tariffs pushing up inflation."
"Still early to assess tariff impact on economy."
"Tariff impact yet to show up in official data."
"Financial stability resilient amid heightened uncertainty."
"Broad-based decline in Dollar foreign exchange value."
"Tariffs have weighed on household, business sentiment."
"Slow start to 2025 tied to tariff related adjustments."
"In early April, treasury market functioning remained orderly, but liquidity fell to levels last seen in early 2023."
"Liquidity also materially deteriorated in equity, corporate bond, and municipal bond markets."
"Liquidity across markets has improved since, but conditions remain responsive to news about trade policy."
Market reaction
The US Dollar Index edged lower from session highs following this publication and was last seen losing 0.1% on the day at 98.70.
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials - the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed's weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
Last updated
: 2025.06.21
Related articles
AUD/USD dips as Trump delays Iran decision, US Dollar strengthens on policy divergence
2025.06.21 01:51USD/JPY climbs to three-week high as Yen shrugs off hot CPI, Fed signals steady policy path
2025.06.21 01:42GBP/USD dips after UK Retail Sales slump, Dollar finds footing on trade jitters
2025.06.21 00:37US Dollar Index holds steady as markets digest Trump's Iran deadline and Fed rate path
2025.06.21 00:16Fed Monetary Policy Report: Policy well-positioned for what lies ahead
2025.06.21 00:14NZD/USD slips on interest rate expectations and geopolitical risks
2025.06.21 00:09
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Silver Price Forecast: XAG/USD extends decline as safe-haven flows ease
Silver (XAG/USD) remains under pressure for a third day in a row on Friday, retreating further after US President Donald Trump announced he would hold off for two weeks before deciding whether the US should step into the escalating Iran-Israel standoff.
New
2025.06.21 03:07Gold holds steady as Trump delays Iran strike; weekly loss nears 1.9%
Gold price trades flat on Friday and is poised to end the week with a nearly 1.90% loss, after US President Donald Trump delayed taking military action against Iran, opting instead for a diplomatic solution. At the time of writing, XAU/USD trades at $3,369, down 0.11%.
New
2025.06.21 02:38AUD/USD dips as Trump delays Iran decision, US Dollar strengthens on policy divergence
The Australian Dollar (AUD) remains under pressure against the US Dollar (USD) on Friday, with AUD/USD trading near 0.6480 at the time of writing.
New
2025.06.21 01:51USD/JPY climbs to three-week high as Yen shrugs off hot CPI, Fed signals steady policy path
The Japanese Yen (JPY) remains under pressure against the US Dollar (USD) on Friday, extending its losing streak despite a subdued Greenback and shrugging off hotter-than-expected inflation figures that highlight persistent price pressures in Japan.
New
2025.06.21 01:42GBP/USD dips after UK Retail Sales slump, Dollar finds footing on trade jitters
The Pound Sterling registers minimal losses during the North American session, after UK Retail Sales data disappointed investors, while the Greenback recovers some ground. Currently, the GBP/USD is trading at 1.3456, down 0.07%.
New
2025.06.21 00:37US Dollar Index holds steady as markets digest Trump's Iran deadline and Fed rate path
The US Dollar Index (DXY) is trading sideways on Friday, holding above 98.00, as markets digest this week's key geopolitical and monetary policy developments.
New
2025.06.21 00:16Fed Monetary Policy Report: Policy well-positioned for what lies ahead
In its Monetary Policy Report to Congress, published on Friday, the Federal Reserve said that inflation is somewhat elevated, while the job market remains in a solid shape, per Reuters.
New
2025.06.21 00:14NZD/USD slips on interest rate expectations and geopolitical risks
The New Zealand Dollar (NZD) is weakening against the US Dollar (USD) on Friday, with NZD/USD slipping below the 0.6000 handle at the time of writing.
New
2025.06.21 00:09Euro gains modestly against US Dollar as Trump calms conflict fears
The Euro (EUR)edges up modestly against the US Dollar (USD) on Friday, capitalizing on a softer Greenback as traders digest a cautious geopolitical signal from the White House.
New
2025.06.20 23:31EUR/GBP edges lower despite downbeat UK retail sales
The Euro (EUR) edges lower against the British Pound (GBP) on Friday, unable to capitalize on disappointing UK retail sales data released earlier in the day.
New
2025.06.20 21:58Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
