FOMC- Ano ba ito?

FOMC

Federal Open Market Committee-

The branch of US Federal Reserve that determines the course of monetary policy, this informs everyone about the decision on interest rates. (profit.com)

Janet Yellen-

Chairman of the Board of Governors of the Federal Reserve System.

wink, wink…

Are you Ready?

What is Interest rate?

The proportion of a loan that is charged as interest to the borrower.

Kapag umutang ka may interest, simple as that. Now if the FOMC will declare interest hike nagkkachain reaction or nakakaapekto yan sa mga banko at sa economy in a whole. WHY? Mga business man ba may credit sa banko? Mga big institution, foreign investor, sino pa ba ang mga may credit. Now kung in terms of dollars yun currency ng utang mas lalong malaki babayaran nila. Am I right?

Another thing, yun pera mo sa banko pag tumaas interest rate damay pera mo. Sa pinas di ako sure but sa US syempre yes. Kaya yun iba lalo na mga kasama natin sa market na smart money or foreigns, nilalabas or pull out nila ang kanilang pera. Then binabalik nila sa banko its either may utang sila para bayaran agad at di madagdagan ang interest. Or gusto nila makuha yung interest or benefit nun if they will put back their money.

Have you seen those foreign the past week pulling out their money? Baka alam na nila kung ano ang bias ng FOMC meeting. Yan naman ay sarili ko lang na observation.

Kapag nagtaas ng rate, you know the drill. Marami na naman paliliparin lalo na yung magagaan na stock at kaya manipulahin. Caveat Traders. Be Wise, Wiser if you must.

 

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