61 Why Markets Move Ahead Of Interest Rate Announcements

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A lesson is how markets and traders Anticipate interest rate changes for stock, futures and forex traders.

Link to FOMC Rate Announcement: http://www.federalreserve.gov/newseve ...

In Our last lesson weekends Looked at how The Fed IS Expected to react at different points in the Business Cycle, and What the Movement Will Be Expected market as today's lesson has result.In we are going to look at how the Fed goes about signaling to The Market Exchange In Their Thinking On The direction of monetary policy, So We Can Begin to Understand Why Markets react to Fed not only to interest rate announcements to events just as importantly Which exchange The Markets anticipation of how the Fed May react.

While We Have The simplified situation in order to Better Understand The Basics of How The Fed uses Monetary Policy, As You Can Probably tell by now, forecasting Economic Conditions and Monetary Policy using to try and manage Those conditions Is A very difficulty process.The members Of The FOMC are Constantly Analyzing economic data from Across the Country to try and gauge Where the Economy Is In The Business Cycle and Monetary Policy what if "any action IS needed.

Did We Have Touched you in previous lessons, The FOMC has eight regularly Scheduled meetings Throughout The Year Where They Meet to Discuss Current Economic Conditions and expectations of future thesis conditions.It iz at meetings Decisions That is What if "any exchange in Monetary Policy Needs to Be made.Upon completion of a thesis meetings press released elk and year example of Which You Can See At The link below if you are watching this video you InformedTrades.com Gold In The description section if you are watching this video on Youtube.

http://www.federalreserve.gov/newseve ...

As we've Learned in previous lessons, what the FOMC Decides to do With Their target for Fed Funds Rate at this meeting has wide ramifications for the Economy and The markets.With Therefor this in mind the Results Of These meetings are Closely Followed by market participants.It Is Important to Understand however thats the market not only looks for whether or not The FOMC Takes Action On The Fed Funds Rate and by how much, for "any purpose aussi cluded in the Fed's Statement as to What May Be Their bias for future rate decisions.

This is a very key point to Understand Because The Markets are Always Trying to Anticipate What Is Going to Happen THEY Therefor and move up and down DEPENDING ON What people think Will Happen to rats forward.Anything That Comes going out from this meeting or "any thing Else That Is What the in-line With Market Expects Should Have Little or No Effect On The market.Conversely Anything That Comes Out Which Change The Market Forecast is what-if "any Fed Action Will Be, can cause drastic moves in the Market participants have to react this new information and adjust accordingly Markets.