#FOMCMeeting ### **#FOMCMeeting – What Traders & Investors Need to Know**

The **Federal Open Market Committee (FOMC)** is the branch of the U.S. Federal Reserve that sets monetary policy, including interest rates and quantitative easing/tightening. Its meetings are major market-moving events, and **#FOMCMeeting** trends whenever key decisions or statements are released.

---

### **Key Details of an FOMC Meeting**

#### **1. When Does the FOMC Meet?**

- **8 scheduled meetings per year** (about every 6 weeks).

- **Emergency meetings** can happen (e.g., COVID-19 crash in March 2020).

- **Next meeting:** [Check Fed's calendar](https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm).

#### **2. What’s Decided?**

- **Interest Rates (Federal Funds Rate)** – The big one! Affects loans, savings, stocks, bonds, and crypto.

- **Hike** → Tightening (bad for growth stocks, good for USD).

- **Cut** → Stimulus (good for markets, bad for cash holders).

- **Hold** → Waiting for more data.

- **Quantitative Tightening (QT) vs. Easing (QE)** – Is the Fed shrinking or expanding its balance sheet?

- **Economic Projections (Dot Plot)** – Fed officials’ rate forecasts.

- **Powell’s Press Conference** – Market often reacts more to his tone than the decision itself.

#### **3. How Do Markets React?**

- **Stocks** 🏦

- Rate cuts = 🚀 (usually)

- Rate hikes = 📉 (but sometimes "good news is bad news" if hikes signal strong economy).

- **Bonds** 📉📈

- Yields move opposite to bond prices. Hawkish Fed = higher yields.

- **Dollar (DXY)** 💵

- Rate hikes typically strengthen USD.

- **Crypto** ₿

- Tends to drop on hawkish Fed, rally on dovish signals.

---

### **Recent FOMC Themes (2023–2024)**

- **"Higher for Longer"** – Fed kept rates high to fight inflation.

- **"Pivot Watch"** – Traders endlessly speculate on rate cuts.

- **"Soft Landing?"** – Can the Fed tame inflation without a recession?