📰 Fundamentals & Macro·beginner

FOMC

Also called: fed, federal reserve, fomc decision

The US Federal Reserve's rate-setting committee — the most important meeting in global forex, held 8 times a year.

FOMC stands for Federal Open Market Committee. It's the group of Fed officials who decide US interest rates. The FOMC meets 8 times a year. Each meeting produces a statement, a rate decision, and 30 minutes later, a press conference from the Fed chair. The statement and decision matter, but the PRESS CONFERENCE often matters more. That's where the chair hints at future moves, which is what markets care about. A "hawkish" chair (hinting at more hikes) usually strengthens the USD. A "dovish" chair (hinting at cuts) weakens it. FOMC days are volatile all day, not just at the release. Volumes drop in the morning as traders get flat. Then the release hits at 2:00pm ET, followed by the presser at 2:30pm, and moves can continue for hours. USD/JPY, EUR/USD, and gold are the most reactive markets.

Real trade example

Dec 2023 FOMC: rates held, but dot plot showed 3 cuts in 2024. USD sold off immediately. EUR/USD ran 300 pips higher over the next week. The initial reaction was RIGHT for once.

Related terms

Interest Rate

intermediate

The cost of borrowing money set by a central bank — the single most important driver of currency strength in modern forex markets.

CPI (Consumer Price Index)

beginner

The main inflation number — how fast prices are rising for everyday goods. Major driver of central bank decisions and forex moves.

Hawkish / Dovish

beginner

Hawkish = central bank wants to raise rates to fight inflation. Dovish = wants to cut rates to support growth. The two words you'll hear most in macro trading.

Jackson Hole Symposium

intermediate

The annual late-August gathering of central bankers in Wyoming where major policy speeches often signal market-moving shifts.

Beige Book

advanced

A qualitative report on US economic conditions published by the Fed eight times a year, two weeks before each FOMC meeting.

Jobless Claims

intermediate

The weekly count of new applications for unemployment benefits — a real-time read on the US labor market.

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