Do you understand the impact the Federal Reserve has on markets and your money?
Most people don’t. And they’re left playing a game against a force they don’t even realize is there.
Central banks are key institutions to understand in order to be a profitable trader or investor.
Their motives and the tools they use to achieve those motives have a huge effect on individual investors.
In the video above we’ll discuss the Fed’s mandates which include:
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Maximum employment
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Stable prices
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Moderate long-term interest rates
We’ll also cover the three policy tools they use to implement those mandates:
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Reserve requirements
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Discount rates
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Open market operations
Understanding the basics about the Federal Reserve will prepare you to learn how they manipulate financial spreads in the market. We’ll cover financial spreads in the next video.
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