Popularly known as being issued by the FED, interest rates decision are more precisely issued by the Federal Open Market Committee (responsible for open market operations) eight times a year just after its meetings.
The FOMC consists of twelve members, seven of which are members of the Board of Governors of the Federal Reserve System, the president of the Federal Bank of New York and four of the remaining eleven Reserve Bank presidents - which rotate on a yearly basis.
The main interest rates settled by the FOMC are responsible for driving inflation in accordance with the monetary policy adopted by the FED. One of the rates in mind is the overnight borrowing rate and the Federal Reserve’s Cash Rate Target (FRCRT). The latter affects interest rates for consumer loans, mortgages, bonds or others.
The actual changes to the interest rates have a direct impact on the US dollar. However, the market expectation, in respect to future monetary policy, plays a part that is even more significant for the market. In such circumstances, any indirect information that provides hints to future FED monetary policy, and thus influences the market expectations in respect to the interest rates, may have a significant impact on the US currency.
Typically, an increase of the interest rates, or expectations of such an increase, provide fundamental support to the US dollar. The lower interest rates may have a negative impact on the US currency.
Periodicity of publication
Statements and interest rates decisions are issued eight times a year according to schedules established by the FED.