#AITradingAffectsForex The Federal Reserve (Fed) makes interest rate decisions through the Federal Open Market Committee (FOMC), which meets eight times a year to assess economic conditions and determine the appropriate monetary policy stance. The Fed's rate decisions significantly impact the forex market, stock market, and overall economy. Key Determinants of Fed Rate Decisions 1. Inflation (CPI, PCE Index) – If inflation is above the Fed’s 2% target, they may raise rates to control price growth. If inflation is low, they may cut rates to stimulate spending. 2. Employment Data (NFP, Unemployment Rate, Job Openings) – Strong labor markets may push the Fed to tighten policy, while high unemployment could lead to rate cuts. 3. Economic Growth (GDP, Retail Sales, ISM PMI) – If economic growth is slowing, the Fed may lower rates to stimulate demand. 4. Financial Stability & Market Conditions – If market stress (like a banking crisis) arises, the Fed may adjust rates to maintain liquidity.