#FedRateCutAffectsDollarTrend To determine the effects of the Federal Reserve’s interest rate decisions, you need to analyze key economic indicators and market reactions. Here’s a step-by-step approach: 1. Watch Fed Announcements & Policy Statements The Federal Open Market Committee (FOMC) meets eight times a year to decide interest rates. Read the Fed’s statement and listen to Chairman’s speech for future rate guidance (hawkish = higher rates, dovish = lower rates). 2. Monitor Key Economic Indicators Inflation (CPI, PCE): Higher inflation = Fed may raise rates. Employment Data (NFP, Unemployment Rate): Strong job growth = Fed may tighten policy. GDP Growth: Strong economy = Justifies rate hikes; weak economy = Rate cuts possible. 3. Analyze Market Reactions Stock Market: Rate Hike → Stocks tend to fall (higher borrowing costs). Rate Cut → Stocks rise (cheaper capital, economic boost). Bond Market: Rate Hike → Bond prices drop, yields rise. Rate Cut → Bond prices rise, yields fall.