FOMC Meetings: Everything You Need to Know as A Trader


The Federal Reserve is the most important central bank in the world because of the special role the US dollar plays as a reserve currency. Therefore, it is important to you as a trader to always pay close attention to FOMC meetings and activities.

First, What is FOMC?

The Federal Open Market Committee (FOMC) is one of the most important items in the economic calendar. It is a special committee of the Fed chaired by the Fed Governor, whose role is to analyze the economy and conduct the necessary monetary policy.

These analyses and conductions are done during the FOMC meetings, which are scheduled – and often impromptu. The scheduled meetings are held every month without a specific frequency.

The FOMC decision is among the most important events in the economic calendar. Important because of how it influences the market in the long run.

Why Is the FOMC Meeting Important to You as a Trader?

The major reason the FOMC meeting is usually considered the most important date on any traders’ calendar is because of INTEREST RATES. Thanks to its policy tools, the FOMC can raise or lower the federal funds rate in the US.

This change in rate will trickle down to other interest rates, including FX rates and bond prices, which can have a big impact on traders. In other words, if the FOMC chooses to raise or lower interest rates, the effects will reverberate across global financial markets.

Major markets that experience this hit are:

  1. Forex trading
  2. Indices trading.
  3. Bonds trading, and
  4. Gold trading.

Inarguably, the US economy is the largest in the world. Therefore, repercussions from the FOMC decision could be felt worldwide. And this is why you, as a trader, have to pay attention to the FOMC decision. It is a major indicator of global economic trends.

Likewise, you can also receive insight from the FOMC decisions into how worldwide central banks may adjust inflation policies.

What Happens at FOMC Meetings?

FOMC Meetings are hosted primarily to discuss interest rates and other financial concerns. Two major purposes of the meeting are to determine what intervention steps are necessary and to review the existing economic data.

Each FOMC meeting has five Federal Reserve Bank presidents and seven governors of the board sit and discuss the monetary policy for the United States and decide what to do. Though the meeting is private, key decisions get announced at a special press conference once everything is finalized and finished.

The minutes of these meetings get released three weeks after they’re held. Typically, these reports record the main decisions of the meeting and explain the reasoning behind them.

If you prefer long-term trading patterns, be aware that the FOMC decision could take time to impact the economy fully. 

What Tools Does the FOMC Use to Influence the Financial Markets?

Of course, as mentioned earlier in this article, the FOMC are strongholds that can influence the market. But the big question is, How Do They Do It?

Here are the tools the FOMC uses to influence the markets:

  1. Federal Funds Rate
  2. Quantitative Easing
  3. Reserve Repurchase Agreements
  4. Primary Credit Rate
  5. Reserve Requirements
  6. YCC (Yield Curve Control)

Top Tips for Trading the FOMC Meetings

Here are expert-proven tips you should consider when trading around FOMC meetings:

1.      Know the Meeting Date

You can know this on the Federal Reserve website. Apart from the announcement of the press conference and policy statement, check out the date and time when the meeting minutes will be released.

2.      Have a Strategy Before the Announcement

Your strategy should detail how you will react to the outcome of the FOMC meeting. What are your market expectations? How do you think the market will react to whatever announcement the FOMC makes?

You can create your strategy based on analysis and opinions from commentators, alongside the comments from previous recent FOMC meetings.

3.      Have a Risk Management Plan

Risk management applies everywhere. You can’t forget about the risk management basics when trading during an FOMC meeting. Use take-profit and stop-loss orders, and make sure you don’t put more than you can afford to lose on a single trade.

4.      Think Long-Term

You don’t necessarily have to trade based on the announcement on the day it’s made. Most of the FOMC decisions take time before influencing the markets and economy. Continue with your long-term strategy, and don’t rush things because other traders are. Remember, your strategy is not their strategy.

Related Articles

This Post Has 32 Comments

  1. leanbiome review

    Regards for helping out, good information. “Job dissatisfaction is the number one factor in whether you survive your first heart attack.” by Anthony Robbins.

  2. It’s laborious to find knowledgeable individuals on this matter, but you sound like you realize what you’re speaking about! Thanks

  3. I truly enjoy looking through on this website , it holds wonderful content. “Beauty in things exist in the mind which contemplates them.” by David Hume.

  4. Fitspresso reviews

    Great amazing things here. I am very happy to peer your post. Thank you a lot and i’m looking ahead to touch you. Will you please drop me a mail?

  5. boostaro

    I genuinely enjoy looking at on this web site, it has superb content.

  6. Excellent beat ! I would like to apprentice at the same time as you amend your web site, how can i
    subscribe for a blog web site? The account aided me a appropriate deal.

    I have been tiny bit familiar of this your broadcast provided bright transparent concept

    Also visit my web-site :: eharmony special coupon code 2024

  7. lean body tonic

    I love your blog.. very nice colors & theme. Did you create this website yourself? Plz reply back as I’m looking to create my own blog and would like to know wheere u got this from. thanks

  8. Java Burn

    I have been exploring for a bit for any high quality articles or weblog posts in this kind of house . Exploring in Yahoo I ultimately stumbled upon this website. Studying this information So i’m glad to convey that I have an incredibly excellent uncanny feeling I came upon exactly what I needed. I such a lot for sure will make sure to don’t omit this web site and give it a glance on a continuing basis.

  9. Tonic Greens: An Overview. Introducing Tonic Greens, an innovative immune support supplement

  10. Thank you for the sensible critique. Me & my neighbor were just preparing to do a little research on this. We got a grab a book from our area library but I think I learned more from this post. I am very glad to see such magnificent info being shared freely out there.

  11. Renew reviews

    When I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove me from that service? Thanks!

  12. Fitspresso

    I conceive this site has got some rattling excellent information for everyone :D. “Years wrinkle the skin, but to give up enthusiasm wrinkles the soul.” by Samuel Ullman.

  13. sugar defender

    Great – I should certainly pronounce, impressed with your site. I had no trouble navigating through all tabs and related information ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Reasonably unusual. Is likely to appreciate it for those who add forums or something, web site theme . a tones way for your client to communicate. Nice task..

  14. Fitspresso

    Very interesting details you have observed, thankyou for putting up. “Above all be true to yourself, and if you can not put your heart in it, take yourself out of it.” by Hardy D. Jackson.

  15. Tonic Greens

    I simply could not depart your site prior to suggesting that I extremely loved the usual info an individual provide in your guests? Is going to be back frequently in order to check out new posts.

  16. Sugar defender drops

    I believe that is among the most important info for me. And i am satisfied studying your article. However wanna remark on few basic things, The website style is perfect, the articles is in point of fact excellent : D. Good job, cheers

  17. sugar defender

    Very interesting information!Perfect just what I was looking for!

  18. Glucoberry

    Utterly written subject material, thanks for entropy. “Life is God’s novel. Let him write it.” by Isaac Bashevis Singer.

  19. Pineal XT review

    It¦s really a nice and useful piece of information. I¦m happy that you shared this helpful info with us. Please keep us informed like this. Thank you for sharing.

  20. Nagano Tonic

    Oh my goodness! an incredible article dude. Thank you Nevertheless I am experiencing concern with ur rss . Don’t know why Unable to subscribe to it. Is there anyone getting identical rss downside? Anyone who knows kindly respond. Thnkx

  21. vpn 2024

    Hey there! I know this is somewhat off topic but I was wondering if you knew where I could find
    a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having difficulty finding one?
    Thanks a lot!

    my website; vpn 2024

  22. Biovanish

    I like your writing style truly enjoying this internet site.

  23. You really make it appear so easy with your
    presentation however I in finding this topic to be really something that I
    think I would never understand. It kind of feels too complex and very
    huge for me. I’m having a look forward to your subsequent put up, I’ll try to get
    the dangle of it!

    Feel free to surf to my homepage; vpn special coupon code 2024

  24. Very interesting topic, appreciate it for posting. “The friendship that can cease has never been real.” by Saint Jerome.

  25. Oh my goodness! a tremendous article dude. Thanks Nonetheless I am experiencing issue with ur rss . Don’t know why Unable to subscribe to it. Is there anyone getting similar rss problem? Anyone who knows kindly respond. Thnkx

  26. e-commerce

    Wow, awesome weblog structure! How lengthy have
    you been blogging for? you made blogging look easy.
    The total look of your site is fantastic, as neatly as the content material!
    You can see similar here dobry sklep

  27. tlover tonet

    It’s laborious to search out knowledgeable people on this topic, however you sound like you recognize what you’re speaking about! Thanks

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us


Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.