USD/CHF FORECAST AND NEWS

The Federal Reserve (Fed)

The Federal Reserve (Fed) is the central bank of the United States (US) and it has two main targets: to maintain the unemployment rate at its lowest possible levels and to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the partially appointed Federal Open Market Committee (FOMC). The FOMC organizes eight scheduled meetings in a year to review economic and financial conditions. It also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.

The Swiss National Bank (SNB) is Switzerland’s central bank, responsible for the country’s monetary policy and the sole issuer of Swiss Franc (CHF) banknotes. Its primary objective is to ensure price stability while considering economic developments, thereby fostering an environment conducive to economic growth.

To ensure price stability, the SNB aims to maintain appropriate monetary conditions, which are determined by the interest rate level and exchange rates. For the SNB, price stability means a rise in the Swiss Consumer Price Index (CPI) of less than 2% per year.

Jerome Powell

Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will expire January 31, 2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997 through 2005, Powell was a partner at The Carlyle Group.

Martin Schlegel

Martin Schlegel is a Swiss economist and Chairman of the Governing Board of the Swiss National Bank (SNB). He graduated in economics from the University of Zurich in 2003 and thereafter joined the Research unit at the SNB. Over the years, he has held various roles at the central bank, including leading the SNB’s Foreign Exchange and Gold Unit and heading the bank’s branch office in Singapore. The Federal Council appointed Schlegel as Chairman of the Governing Board with effect from October 1, 2024.