The European Stability Mechanism (ESM) is a permanent financial organization that Eurozone countries established in 2012 to help stabilize the economy during crises. It helps in providing financial assistance to Eurozone countries that cannot borrow from the market because of

Introduced in 2012, the Fed dot plot is a visual representation of the Federal Open Market Committee (FOMC) members’ projections for the federal funds rate. Each dot signifies an individual member’s expectation for interest rates at the end of specific

Fed Funds Futures are financial contracts that allow traders to speculate on or hedge against changes in the U.S. federal funds rate the interest rate at which banks lend to each other overnight. These futures reflect market expectations of future

“Fed Put” is a metaphor borrowed from the world of options trading. In options trading, a “put” is a contract that gives the holder the right to sell an asset at a specified price, providing protection against falling prices. Similarly,

The Federal Funds Rate is the interest rate at which banks lend reserve balances to other banks overnight. The Federal Reserve (often referred to as “the Fed”) sets a target for this rate to guide economic conditions. By adjusting this

The Foreign and International Monetary Authorities (FIMA) Repo Facility is a tool introduced by the U.S. Federal Reserve to support global financial stability. It allows foreign central banks and other international monetary authorities to temporarily exchange their U.S. Treasury securities

The term “fixed exchange rate” is not new as it often pops up. But what does it mean, and why is it significant? This article explains the concept of fixed exchange rates in simple terms, how it works and the

A floating exchange rate is a currency exchange system where the value of a country’s currency is determined by the forces of supply and demand in the foreign exchange market, rather than being fixed or pegged to another currency or

The FOMC (Federal Open Market Committee) is a branch of the Federal Reserve System in the United States and is responsible for overseeing and guiding monetary policy. They play an important role in managing economic stability by setting targets for

Forward Guidance is a monetary policy tool used by central banks to communicate the likely direction of future interest rates or other monetary policies. It aims to influence the expectations and behavior of businesses, investors, and consumers by providing them