FOMC Meeting: Determinant of Global Markets
The FOMC meeting is an important gathering of the Federal Open Market Committee of the US Federal Reserve, the central bank of America. Eight times a year, this committee decides on the US benchmark interest rate (Federal Funds Rate), which serves as a global standard. This decision, along with policy statements and economic projections, significantly impacts financial markets worldwide.
An increase in US interest rates tends to strengthen the US Dollar, attracting capital out of emerging markets like Indonesia, weakening the Rupiah, and potentially putting pressure on the JCI (Jakarta Composite Index). Conversely, a reduction in interest rates can provide positive sentiment. Understanding the results of the FOMC Meeting is crucial for investors to make informed decisions.
