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FOMC
(Federal Open Market Committee)
The FOMC (Federal Open Market Committee) is the Fed's monetary policy-setting body, comprising 12 members (7 Fed governors + 5 regional Fed bank presidents). Meets 8x/year to decide interest rates and quantitative easing (QE) policies.
FOMC announcements move markets—a 0.25% rate hike can swing the S&P500 by 2%. The "dot plot" reveals members' rate projections, while press conferences clarify stance (hawkish/dovish). Tools include the federal funds rate (bank lending rate) and balance sheet operations ($8.7T peak in 2022). The ECB and BoE have analogous committees. Traders scrutinize FOMC minutes for clues on future moves.
FOMC announcements move markets—a 0.25% rate hike can swing the S&P500 by 2%. The "dot plot" reveals members' rate projections, while press conferences clarify stance (hawkish/dovish). Tools include the federal funds rate (bank lending rate) and balance sheet operations ($8.7T peak in 2022). The ECB and BoE have analogous committees. Traders scrutinize FOMC minutes for clues on future moves.