#FOMCMeeting The **Federal Open Market Committee (FOMC)** is the branch of the U.S. Federal Reserve responsible for setting monetary policy, primarily through decisions on interest rates and asset purchases. FOMC meetings are closely watched by investors, economists, and policymakers for signals about future economic conditions.
### **Next FOMC Meeting (2024 Schedule)**
The FOMC typically meets **eight times a year**. Key upcoming meetings in **2024** include:
- **July 30-31, 2024**
- **September 17-18, 2024**
- **November 6-7, 2024**
- **December 17-18, 2024**
### **What to Expect in the Next Meeting (July 2024)**
1. **Interest Rate Decision**
- The Fed has kept the **federal funds rate** at **5.25%-5.50%** since July 2023.
- Markets are watching for signals on when the Fed might cut rates, possibly in **late 2024 or 2025** depending on inflation and jobs data.
2. **Inflation & Economic Projections**
- The Fed’s preferred inflation gauge (**Core PCE**) has been easing but remains above the 2% target.
- Updates on GDP growth, unemployment, and inflation forecasts may influence future policy.
3. **Balance Sheet Policy (Quantitative Tightening)**
- The Fed has been reducing its bond holdings but may discuss slowing the pace of balance sheet runoff.
### **Recent Trends (June 2024 Meeting)**
- The Fed held rates steady but signaled **only one rate cut in 2024** (down from three projected earlier).
- Chair **Jerome Powell** emphasized a cautious approach, needing more evidence that inflation is sustainably declining.
### **Market Impact**
- **Stocks**: Rate cuts are generally bullish, while delays may cause volatility.
- **Bonds**: Yields (e.g., 10-year Treasury) react to Fed guidance.
- **USD**: A hawkish Fed tends to strengthen the dollar.