What is the FOMC?
In one line: The FOMC is the Federal Reserve's Federal Open Market Committee — the group that sets US interest rate policy.
What it does
The FOMC decides the target for the federal funds rate — the rate banks charge each other for overnight loans. That rate ripples out into loans, mortgages, savings and, in the end, stock prices and currencies.
It holds 8 scheduled meetings a year. The dates are posted in advance on the Federal Reserve's website.
What an FOMC day looks like
On the final day of a meeting:
- 2:00 pm ET — the statement comes out, with the rate decision.
- 2:30 pm ET — the Fed Chair holds a press conference.
On a chart, the morning is often quiet, as if everyone is waiting. At 2:00 pm, candles can suddenly get much bigger — sometimes up, then down, then up again within minutes. The press conference can move markets again.
Why it matters
Big news means bigger, faster moves — more volatility. Stops can fill at worse prices than planned (slippage), and the spread often widens right at the release.
What moves price isn't only the decision. It's the decision compared with what traders expected, plus any hints about future meetings.
A common mistake
Not knowing it's FOMC day. A trader sets up a normal trade at 1:45 pm and gets caught in the 2:00 pm swing. The setup wasn't wrong — the timing was.
Check the calendar every morning. Many traders simply stay out from a few minutes before 2:00 pm until the moves settle. Our economic calendar guide shows how.
More in CPI and FOMC days and how interest rates affect stocks.
Questions
How often does the FOMC meet?
Eight scheduled times a year, roughly every six weeks. It can also hold unscheduled meetings.
What time is the FOMC announcement?
The statement is released at 2:00 pm ET, and the press conference starts at 2:30 pm ET.
Does the FOMC affect forex and crypto too?
Often, yes. US rates affect the dollar, so currency pairs and other markets can move on FOMC days.
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