FOMC (Federal Reserve)
The FOMC (Federal Open Market Committee) is the body of the US Federal Reserve that sets the benchmark US dollar interest rate. Its decisions move every market.
How it works
The committee has 12 voting members: the 7 Fed governors, the president of the New York Fed and 4 of the other 11 regional bank presidents, who rotate. There are eight scheduled meetings a year. The rate decision is released at 2:00 pm Washington time, and the Fed chair holds a press conference half an hour later.
Markets watch not just the decision but the statement, the tone of the press conference and, four times a year, the dot plot, which shows committee members' rate projections. The decision is often expected, so it is the hints about future moves that drive prices.
Three weeks after each meeting the minutes come out with details of the discussion, and they can move markets too. Rate hikes and a hawkish tone usually support the dollar and weigh on gold, stocks and crypto; easing usually does the opposite.
Markets give a 95% chance of a hold, and the Fed holds, so the decision itself barely moves anything. But the dot plot shows one fewer rate cut next year than expected. The dollar strengthens and EUR/USD drops about 60 pips within an hour.
The beginner mistake is trading the headline that rates are unchanged and ignoring the press conference. The first move after 2:00 pm often reverses once the Fed chair starts answering questions. If you trade on FOMC day, cut your size, set stops that allow for wider spreads, or simply wait until the press conference is over.
Questions and answers
What is the FOMC in simple terms?
It is the US Federal Reserve committee that decides whether to raise, cut or hold the US dollar interest rate.
How often does the FOMC meet?
Eight scheduled meetings a year, roughly every six weeks. In a crisis it can also act between meetings.
How does the Fed's decision affect crypto?
Higher rates make money more expensive and usually weigh on risk assets, including crypto. Cuts tend to support them, but the reaction is never guaranteed.
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Updated: 2026-10-19