Thursday, May 15, 2025
  • Login
GoTradingAsia
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us
No Result
View All Result
GoTradingAsia
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us
No Result
View All Result
GoTradingAsia
No Result
View All Result

Fed Rate on Investors’ Watch Pt. 4

Putriyana by Putriyana
2 years ago
in Technical Analysis
Why investors watch the Fed Rate?

Why investors watch the Fed Rate?

RelatedArticle

Unlocking Success: Mastering a Disciplined Trading Mindset

Technical Analysis Trading Opportunities in Gold Prices

How AI is Revolutionizing the Trading Landscape

Short-Term Investment Strategies for a Brighter Financial Future

Fed rate rate could impact the stock market. This becomes the reason why investors keep watching the fed rate. The prime rate is the rate that the banks charge for their creditworthy borrowers. This is a rate that could influence federal funds rate.  Commonly, the stock market would have a strong response to the target rate’s changes. The epitome is like a small decline in the rate can trigger the market to move higher as the companies’ borrowing costs are lower. Thus, stock analysts tend to be careful and pay much attention to the FOMC members. The purpose is to get a sense where the rate would be.

At the very first place, the banks charge the interest rate to borrow or lend excess reserves overnight. So, the law requires the banks to own a minimum reserve level based on their deposits. A Federal Reserve Bank is in the reserve requirement. It means that when a bank owns excess reserve requirements, it could lend the funds overnight to other banks. The banks that borrow sometimes have realized their reserve deficit. Therefore, it is imperative for the Federal Open Market Committee (FOMC) to meet eight times at least a year to decide the Fed rate. Economic indicators would influence the rate. This covers the durable goods orders report and the core inflation rate. Because two of them could give signals about the country’s economic health.

Therefore, is there any difference between the regular interest rates and federal funds? Both indicators are important in the U.S. The major difference is that the federal funds rate sets the range for banks to lend or borrow. Because, it would influence borrowing costs and financial conditions, plus stock market.

Tags: Fed ratefederal funds rateInvestorstock market
Putriyana

Putriyana

Related Posts

Unlocking Success: Mastering a Disciplined Trading Mindset

Disciplined trading mindset, technical analysis gold prices. Man counting the money, Math in forex.
by oney
October 27, 2024

In the fast-paced world of trading, success often hinges not just on market knowledge or technical skills, but on something...

Read more

Technical Analysis Trading Opportunities in Gold Prices

Disciplined trading mindset, technical analysis gold prices. Man counting the money, Math in forex.
by oney
October 15, 2024

Introduction Technical analysis plays a crucial role in identifying trading opportunities in gold prices. By analyzing historical price data and...

Read more

How AI is Revolutionizing the Trading Landscape

AI and Machine learning in trading. Illustration of a business professional shaking hands with a robot. The robot is emerging from a large smartphone screen. Surrounding the smartphone are various technological and financial icons, including a light bulb, blockchain symbols, a microchip, graphs, and currency symbols, representing the integration of artificial intelligence in business. The background is a light blue color. That simbolyse about AI impact on business efficiency.
by oney
October 11, 2024

Introduction Artificial Intelligence (AI) is revolutionizing the trading landscape, bringing unprecedented levels of efficiency, accuracy, and strategic insight to financial...

Read more

Short-Term Investment Strategies for a Brighter Financial Future

Trading Psychology, Coin to be tree, Short-Term, Invesment Strategies, social trading and copy trading.
by oney
October 6, 2024

In the world of finance, the type of investment consists of several parts, that is long-term, medium-term, and short-term investment....

Read more
Load More
Next Post

Stratgies for Formula Investing

Trending Issues

  • Cristiano Ronaldo makes Coca-Cola losing millions businesses

    Cristiano Ronaldo and His 6 Successful Businesses

    0 shares
    Share 0 Tweet 0
  • 10 Heads of State with The Highest ‘Salary’ in The World

    0 shares
    Share 0 Tweet 0
  • Quick Broker Review: XM Broker

    0 shares
    Share 0 Tweet 0
  • The Pros and Cons Using Western Union

    0 shares
    Share 0 Tweet 0
  • Take A Look at Didi’s Autonomous Driving Car

    0 shares
    Share 0 Tweet 0

Get the latest market news and trading tips to your inbox daily, subscribe now !

Topic

  • Asia News
  • Asia Trade
  • Bonus+Promotions
  • Broker News
  • Business News
  • Cryptocurrency
  • Currency Analysis
  • Finance News
  • Forex & Market
  • Forex Tips
  • Hot News
  • Investment Tips
  • Learn to Trade
  • Market Analysis
  • Politics Issue
  • Reviews
  • Social Media
  • Stock Analysis
  • Stock Market
  • Stock Trading Tips
  • Technical Analysis
  • Tips
  • trading strategy
Go Trading Asia

Go Trading Asia covers the latest in Business and Economic News and Market Analysis, with the aim of Providing Readers with the knowledge and tools to make better informed financial decisions.

  • Contact us
  • Privacy Policy
  • Disclaimer

© 2021 Go Trading Asia.

No Result
View All Result
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us

© 2021 Go Trading Asia.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In