#FOMCMeeting

The FOMC Meeting is the meeting of the Federal Open Market Committee (FOMC) of the Federal Reserve System (FED) of the United States. This is one of the most important financial events in the world, especially for the money market, gold, crypto, and stocks.

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1️⃣ What is the FOMC?

• FOMC (Federal Open Market Committee): The agency that determines monetary policy in the United States.

• Composition: 12 members (7 members of the Board of Governors + 5 regional FED Presidents).

• Main tasks:

• Decide the interest rate (Fed Funds Rate).

• Adjust monetary policy → control inflation, economic growth, and the labor market.

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2️⃣ How does the FOMC Meeting take place?

• Frequency: 8 times a year (approximately every 6 weeks).

• Main content:

• Evaluate economic conditions, employment, inflation.

• Announce the base interest rate → Increase, decrease, or maintain.

• Release the Policy Statement (FOMC Statement).

• Some meetings have press conferences from the FED Chairman (like the current Jerome Powell) → the market is very sensitive to statements here.

• Sometimes accompanied by the Dot Plot (chart forecasting future interest rates) and SEP (Summary of Economic Projections).

The FOMC is the agency that determines interest rates in the United States.

• The crypto market (BTC, ETH…) reacts very strongly to the FOMC, especially if there are changes in interest rates or unexpected statements.

• FOMC schedule = Extremely sensitive days, traders need to pay close attention to risk management.