Humphrey-Hawkinstestimony
ThisisareportfromtheheadoftheFederalReserveSystemoftheUSAthattakesplacetwiceayear,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.
