#FOMCMeeting

The global markets are eagerly awaiting the results of the Federal Open Market Committee (FOMC) meeting of the US Federal Reserve. But what is this committee and what is the importance of its meetings?

What is the Federal Open Market Committee (FOMC)?

The FOMC is the primary monetary policy-making arm of the U.S. central bank (the Federal Reserve). The committee meets eight times a year (every six weeks) to review economic and financial conditions and determine the appropriate direction for monetary policy.

Why are these meetings important to us?

The FOMC's decisions have a huge impact on the U.S. and global economies. Here's how:

* Sets interest rates: The committee determines the target range for the federal funds rate, which in turn influences interest rates on loans and deposits worldwide.

* Affects inflation and employment: The committee aims to achieve maximum employment and stable prices (inflation target is usually around 2%). Raising or lowering interest rates affects the money supply and the pace of economic growth.

* Moves markets: Investors and traders closely monitor FOMC statements and announcements as they can cause significant volatility in the prices of stocks, bonds, currencies (especially the U.S. dollar), and commodities.

The Upcoming Meeting (Today's Date - June 17, 2025):

The committee's decision on interest rates is scheduled to be released tomorrow, Wednesday, June 18, 2025. Markets are anticipating any signals regarding the future path of monetary policy, especially expectations for interest rate cuts.

What should be monitored?

* Interest Rate Decision: Will the interest rate be kept unchanged, raised, or lowered?

* Monetary Policy Statement: Analyzing the language used to understand the Federal Reserve's outlook on the economy and inflation.

* Press Conference by Federal Reserve Chair (Jerome Powell): Looking for indications about future directions and answers to journalists' questions.

* Do Your Own Research