From the course: Economic Tips for Everyone

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Central bank policy and economics strategy

Central bank policy and economics strategy

From the course: Economic Tips for Everyone

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Central bank policy and economics strategy

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- You can't fight the Fed. It's something said by traders everywhere and it means that whatever your central bank is doing is bigger than you are and you need to have a strategy around what they're doing. Central bank policies impact the cost of money, the valuation of businesses and investments, prospects for inflation, and the health of the job market. So in order to make sure that you aren't fighting the Fed, you need to know what central bank decisions are being made. For example, you should know about their perspective and expectations for growth and inflation, you should know if there's a target for inflation, you should know what current policy interest rates are, and you should know if quantitative easing, or QE, is going on and if more is on the way. Whatever your investment and business strategies may be, make sure that they align with central bank policies. After all, the impact of central bank policies is so much…

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