Fed Policy

Definition ∞ This refers to the monetary and credit policies enacted by the United States Federal Reserve. These policies, including interest rate adjustments and quantitative easing or tightening, are designed to manage inflation, employment, and economic growth. They exert considerable influence over broader financial markets, including the digital asset sector.
Context ∞ ‘Fed Policy’ is a critical factor influencing macroeconomic conditions and, consequently, the digital asset market. News often analyzes Federal Reserve statements, interest rate decisions, and economic forecasts to gauge their potential impact on asset prices and investor sentiment. Understanding Fed policy is vital for interpreting market movements and anticipating shifts in capital flows towards or away from riskier assets like cryptocurrencies.