Unlocking the Secrets of the Fed

The Federal Reserve is the leading economic policy institution in the world. Its decisions and actions affect individual wealth as well as economies around the world. As the veil cloaking the mysterious world of U.S. central banking continues to be lifted through the efforts of Fed Chairman Alan Greenspan, you can finally begin to understand and anticipate how the actions of the Federal Reserve will be critical to your investment success. Written by America's most respected Fed watcher-Dr. David Jones-Unlocking the Secrets of the Fed: How Monetary Policy Affects the Economy and Your Wealth-Creation Potential offers an in-depth look at the workings of the Federal Reserve and its impact on your investments. This practical guide takes you inside the world of monetary and fiscal policymaking and examines how the most important policymaking body in the United States functions. Unlocking the Secrets of the Fed provides valuable insights into the Fed's monetary policy objectives, operating techniques, and favorite financial and economic indicators, all of which will help finance professionals and conscientious individual investors forecast Fed policy shifts as well as related interest rate and stock market movements. To fully understand how the Federal Reserve can affect the average American's wealth-creation potential, this book looks at the nuts and bolts of monetary policy. You will see how the three basic channels of Fed influence-interest rates, both levels and spreads; the stock market operating mainly through the wealth effect on consumer spending; and the dollar-are used as monetary authorities seek price stability and sustainable growth within the United States. This comprehensive guide also reviews the modern-day Fed's main challenges and concerns so that you may gain greater insight into its policy actions. Besides showing you how to increase your returns and protect yourself from unexpected downturns in any particular market, this easy-to-read guide underscores the important role that psychology plays in our nation's economic expansions and contractions. You'll learn how factors such as market psychology and asset price bubbles can produce both soaring optimism and the deepest pessimism. Modern-day U.S. central banking is more art than science, but with Unlocking the Secrets of the Fed you can learn how and why the Fed acts the way it does and move swiftly on that information to lock in profits or get out before it's too late.