What Is the FOMC? Inside the Two-Day Meeting That Sets the Price of Money What is the FOMC? It’s the twelve-person committee whose vote, announced at exactly 2:00 p.m. Eastern on the second day of its meetings, moves more money than any other scheduled event on Earth — repricing mortgages, credit cards, bonds, and stock … Read more
ECB Rate Hike Explained: Why Europe Is Raising Rates Into a Struggling Economy An ECB rate hike is, in the words of one Aberdeen economist, “all but certain” — markets price the odds near 100% that the European Central Bank raises its key interest rate by a quarter point to 2.50% at its September 10 … Read more
Central Banks Around the World: How Different Countries Manage Their Money Central banks around the world all do a similar job — managing a country’s money — but they are far from identical. The US Federal Reserve gets most of the global attention, but every major economy has its own central bank, each with its … Read more
How the Fed Sets Rates: Inside the Meeting That Moves the World How the Fed sets rates is one of the most consequential processes in the global economy, and it happens in a room most people will never see. Eight times a year, a small group of officials sits down, debates the state of the … Read more
The Federal Reserve Explained: The Most Powerful Bank You Never See The Federal Reserve is the most powerful economic institution in the world, and most people could not explain what it does. It sets the interest rates that shape your mortgage and savings. It can create money out of nothing. Its decisions move markets on … Read more
Interest Rates Explained: The Price of Money and Why It Rules the Economy Interest rates are, quietly, one of the most powerful forces in your financial life. They decide how much you pay on a mortgage, how much you earn on your savings, whether businesses expand or contract, and even how much your currency is … Read more