The meetings of the Federal Open Market Committee (FOMC), the body within the Federal Reserve System responsible for formulating monetary policy. These meetings, which occur approximately eight times a year, are closely followed by financial markets and economists worldwide, as they can significantly affect interest rates, inflation, and overall economic activity.
Some key points about FOMC meetings are:
* Deliberation on economic conditions: The twelve members of the FOMC (which include the Board of Governors of the Federal Reserve System and five of the twelve presidents of the Federal Reserve Banks) discuss economic outlooks, financial conditions, and potential risks.
* Monetary policy decisions: The main outcome of these meetings is the decision regarding the stance of monetary policy, which includes setting the target range for the federal funds rate. This rate influences borrowing costs throughout the economy. The FOMC may also decide on other measures, such as easing or quantitative tightening.
* FOMC Statement: After each meeting, the FOMC publishes a statement summarizing its assessment of the economy and its policy decisions. This statement is carefully analyzed for clues about the future direction of policy.
* Minutes and projections: Three weeks after each meeting, the minutes are published, providing a more detailed account of the discussions. In some meetings (indicated with an asterisk *), the FOMC also publishes its Summary of Economic Projections (SEP), which offers forecasts for key economic variables such as GDP growth, unemployment, and inflation, as well as the future trajectory of the federal funds rate.
As of today, May 9, 2025, the FOMC has held the following regularly scheduled meetings this year:
* January 28 and 29, 2025: The FOMC decided to maintain the target range for the federal funds rate.
* March 18 and 19, 2025*: The FOMC again kept the federal funds rate unchanged and published its economic projections, forecasting slower growth and higher inflation by the end of the year, partly reflecting the expected impact of recently implemented U.S. tariffs.
* May 6 and 7, 2025: The FOMC maintained the federal funds rate at 4.25%-4.50% for the third consecutive meeting, taking a wait-and-see approach amid economic uncertainties and concerns about the impact of tariffs on inflation and economic growth.
The next FOMC meeting is scheduled for June 17 and 18, 2025*. Market participants are closely watching for signals regarding potential interest rate cuts later in the year. Futures markets currently indicate a significant probability of a rate reduction at the June meeting. The decision and statement from this meeting will be published on June 18 at 2:00 PM ET (18:00 UTC), followed by a press conference from the Federal Reserve Chair at 2:30 PM ET (18:30 UTC). The minutes from this meeting will be published on July 9, 2025.