Humphrey-Hawkinstestimony

ThisisareportfromtheheadoftheFederalReserveSystemoftheUSA(Fed)thattakesplacetwiceayear,everysummerandwinter.First,theSenatelistenstoitthentheHouseofRepresentatives.ThisreportcontainsinformationaboutthegoalsandplansoftheFedinrelationtocurrentmonetarypolicy.InvestorstrytousethereporttoguessfutureFedactionsconcerningchangesinthebaseinterest.ThisspeechisthestrongestfactoraffectingthemarketandoneofthemostimportanteventsinForex. Untilmid-2000,whenitexpired,apieceoflegislationknownasHumphrey-HawkinsrequiredtheFederalOpenMarketCommitteetoreporttoCongressontheeconomyandmonetarypolicytwiceayear.WhileCongresswranglesovernewlegislation,thepracticecontinues,withreportsinFebruaryandJuly.Whilethey'renolongerofficiallyHumphrey-Hawkinsreports,they'restillcolloquiallycalledthat. Concurrentlywiththereleaseofthereport,theFedchairmantestifiesbeforeCongress,summingupthereport.Traditionally,itisamongthemostimportantspeechesgivenbytheFedchairman.UnderHumphrey-Hawkins,thetestimonywasdeliveredfirsttotheHouseBankingCommittee,andtotheSenateBankingCommitteewithinseveraldays. Theoriginallegislation,theFullEmploymentandBalancedGrowthActof1978,wasnamedforitssponsors,Sen.HubertHumphreyandRep.AugustusHawkins.