Federal Open Market Committee (FOMC)

The FOMC has 12 voting members: the seven members of the Federal Reserve Board, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional bank presidents on a rotating basis. It holds eight scheduled meetings a year and can meet in between if needed. Each meeting ends with a policy statement, and the chair holds a press conference.

FOMC decisions on interest rates and balance sheet policy influence borrowing costs, the dollar, bond yields and the valuation of risk assets, including equities and cryptoassets. Markets react not only to decisions but also to the statement’s wording, the chair’s comments, the quarterly economic projections, and the minutes released three weeks after each meeting. Pricing in futures markets shows expectations ahead of meetings.

For allocators, FOMC meetings are scheduled volatility events that shape the discount rate for all assets. Example: if the committee cuts its target range by a quarter point and signals further cuts, Treasury yields may fall and growth assets often rally.