The FOMC is the Federal Open Market Committee, the group inside the Federal Reserve that sets U.S. monetary policy. Its rate decisions can affect borrowing costs, risk appetite, the dollar, and valuations across stocks and crypto.
The FOMC usually meets eight times per year. Some meetings include a press conference and the Summary of Economic Projections, often called the SEP or dot plot.
Why traders care
Markets react to the policy decision, the statement language, the press conference, and what the Fed signals about future cuts or hikes. Sometimes the expected rate decision is already priced in, and the bigger move comes from guidance.
What can move markets
- The target rate decision.
- Changes in inflation or labor-market language.
- The Fed chair's press conference.
- The dot plot at projection meetings.
For perps, Fed days can mean faster price moves, funding changes, and liquidation risk if a position is too large for the event.
Official source: The Federal Reserve publishes the FOMC calendar and materials at federalreserve.gov.