What is FOMC.
The Federal Open Markets Committee (FOMC) is the monetary policy-making body of the Federal Reserve System. It consists of 12 members, including the seven members of the Board of Governors and five rotating regional bank presidents.
The FOMC's responsibilities are to:
set monetary policy, which is the process of managing interest rates and the money supply, in order to achieve maximum employment, stable prices, and moderate long-term interest rates.
supervise and regulate banking institutions.
provide financial services to depository institutions, the U.S. government, and foreign official institutions.
The FOMC sets a target for growth in economic activity as well as an inflation rate over a period of time. It makes decisions about buying or selling securities and about changing interest rates to carry out these goals
FOMC Meeting Schedule.
The FOMC meeting schedule is set by Congress, which mandates that the Committee must meet at least four times a year. The FOMC also meets if there are important issues that need to be discussed or if economic conditions warrant an unscheduled meeting.
The FOMC members meet to vote on its goals for economic growth and inflation, on whether or not to change interest rates, and on other related matters. The Committee typically issues a statement announcing its decision after each meeting ends.
FOMC Meeting Today.
Today, the Federal Reserve will have its monetary policy meeting. Another super-sized 75 bps rate hike at next week's FOMC meetings seems all but assured. Employment growth has been robust over the past two months, averaging 421K new jobs in July and August. Headline inflation has been relatively tame over the same period, but falling gasoline prices have accounted for the bulk of the weakness. Excluding food and energy, core inflation has remained far too high for the Fed's liking. Over the past three months, core inflation has risen at a 6.5% annualized rate, more than triple the central bank's 2% target.
Next FOMC Meeting.
The next FOMC meeting to decide on whether to increase interest rates will be on the 2nd of November 2022 so mark your calendar as there will be trading opportunities come that day.
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