Fed Monetary Policy Report is a written report submitted every six months by the Fed to the Congress: to the Senate Committee on Banking, Housing and Urban management, and to the House of Representatives Committee on Financial Services.
The report consists of three parts. The first part contains estimates of recent economic and financial developments affecting the exchange rate of the national currency. It also provides a description of labor market conditions, GDP dynamics and GDP change characteristics, as well as estimates of stability and figures on the development of the banking sector.
The second part of the report contains a description of the national monetary policy: measures taken, explanation of these measures and their efficiency. In this report, the regulator describes changes in short-term interest rates and measures for quantitative easing, as well as characterizes the state of national reserves and the balance of the financial system. The US monetary policy is developed by the FOMC (Federal Open Market Committee) and is aimed at maintaining price stability, economic growth, full employment and the stability of international trade.
In the third part, the Fed provides a brief outlook for inflation, unemployment and economic growth, which is based on the analysis of current developments.
The Fed's reports are publicly available. Depending on their content, economists try to predict near-term changes in the Fed's interest rate and evaluate US inflation and economic prospects. The publication of this report has a mild influence on dollar quotes, as data contained therein are known in advance, and their interpretation provided by the Fed is predictable.