FOMC

The Federal Open Market Committee (FOMC) is the monetary policy decision-making body of the US Federal Reserve that meets eight times per year to set the federal funds rate and determine the direction of monetary policy.

By Marco Bösing1 min read

What Is the FOMC?

The Federal Open Market Committee (FOMC) is the primary monetary policy-making body of the United States. It consists of the seven members of the Federal Reserve Board of Governors and five regional Federal Reserve Bank presidents, and it meets eight times per year.

At each meeting, the FOMC decides on the federal funds rate — the US benchmark interest rate — as well as the overall direction of monetary policy, including measures such as Quantitative Easing or Quantitative Tightening. The subsequent press conference and statement provide critical signals about the future path of monetary policy.

For traders, FOMC dates rank among the most volatile events on the calendar, as rate decisions and forward guidance can fundamentally shift expectations for the economy and financial markets.

Read the full article: FOMC Trading Strategy

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