FOMC Meetings
Federal Reserve interest rate decisions that move all markets simultaneously.
Quick Answer
The Federal Open Market Committee (FOMC) meets 8 times per year to set US monetary policy. Their decisions on interest rates affect everything from mortgages to stock prices. The post-meeting statement and press conference can cause massive volatility.
On This Page
Overview
The Federal Open Market Committee (FOMC) meets 8 times per year to set US monetary policy. Their decisions on interest rates affect everything from mortgages to stock prices. The post-meeting statement and press conference can cause massive volatility.
What It Is
The FOMC is the Fed's monetary policy committee. They control the federal funds rate—the interest rate banks charge each other overnight. This rate influences all other rates in the economy and has massive ripple effects across every asset class.
Why It Matters
Interest rates are the price of money. When rates rise, borrowing costs increase, corporate profits fall, and stocks typically decline. When rates fall, the opposite happens.
Note
How to Trade FOMC
Timing & Schedule
Typical Time
2:00 PM ET (statement), 2:30 PM ET (press conference)
Schedule Notes
Meetings are scheduled months in advance. The January, March, June, September, and December meetings include updated economic projections (dot plot).
Typical Schedule
8 times per year
Key Metrics to Watch
Trading Strategies
Common Mistakes to Avoid
Trading the 2 PM statement
Why It Happens
How to Avoid
Be aware and plan accordingly
Fighting the Fed
Why It Happens
How to Avoid
Be aware and plan accordingly
Overleveraging for the event
Why It Happens
How to Avoid
Be aware and plan accordingly
Historical Examples
Fed surprised with 0.75% hike instead of expected 0.50% to fight inflation.
Fed surprised with 0.75% hike instead of expected 0.50% to fight inflation.
Market Reaction:
Fed hiked rates despite banking crisis, but signaled pause ahead.
Fed hiked rates despite banking crisis, but signaled pause ahead.
Market Reaction:
Preparation Checklist
- Know what the market expects (Fed Funds futures show probability)
- Check if this meeting includes dot plot projections
- Clear your calendar from 2-4 PM ET
- Have both long and short scenarios mapped out
- Don't chase—there will be better entries later