The Federal Reserve Bank of the United States is the core institution guiding the direction of the dollar policy. The Federal Open Market Committee (FOMC) is mainly responsible for formulating monetary policy, including issuing eight key interest rate adjustment announcements every year. Its 65,438+02 members are composed of government officials, governors of new york and local federal reserve banks.

The U.S. Treasury Department is responsible for issuing U.S. government bonds and making budgets. The U.S. Treasury has no say in the country's monetary policy, but its comments on the dollar may have a greater impact on the exchange rate of the dollar.

The federal funds rate is the most important interest rate indicator in the United States, and it is also the overnight lending rate between savings institutions. When the Fed wants to express a clear signal of monetary policy to the market, it will announce the adjustment of interest rates, which will cause great fluctuations in the stock, bond and money markets. In addition, the price of the federal funds rate futures contract directly reflects the market's expectation of interest rates.

Discount rate, that is, the interest rate at which the Federal Reserve issues loans to commercial banks. Although this is a symbolic interest rate indicator, its change sometimes expresses a strong policy signal. The discount rate is usually lower than the federal funds rate.