What the FOMC is
The Federal Open Market Committee (FOMC) is the body of the US Federal Reserve that sets monetary policy. Its main tool is the target range for the federal funds rate, the overnight rate at which US banks lend reserves to each other. An FOMC rate decision changes that range or keeps it where it is. It also covers the Fed's balance sheet policy (see QE and QT).
The Fed works to a dual mandate: maximum employment and stable prices. Every decision is framed around inflation data such as CPI and PCE, and labour data such as non-farm payrolls. For background on the institution itself, see US Federal Reserve.
- The central bank raises its policy rate, or signals that it will.
- Deposits and bonds in that currency start to pay more.
- Investors move money into the currency to earn the higher yield.
- The currency tends to strengthen; a rate cut usually works the other way.
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Who votes at an FOMC meeting
The committee has voting members and participants who take part in the discussion but do not vote.
| Group | Voting status |
|---|---|
| Members of the Board of Governors in Washington, including the Fed Chair | Vote at every meeting |
| President of the Federal Reserve Bank of New York | Votes at every meeting (permanent vice chair of the FOMC) |
| Presidents of the other regional Reserve Banks | Vote on a yearly rotation; non-voting presidents still join the debate |
The Chair leads the meeting and speaks for the committee at the press conference. Dissents, meaning votes against the decision, are published with the statement. Traders watch them because they show how divided the committee is.
FOMC meeting dates and schedule
The FOMC holds regularly scheduled meetings several times a year. Most of them run over a pair of days, and the decision comes on the final day. The committee can also hold unscheduled meetings. In the past these have been used in market stress, sometimes with a decision announced between regular meetings.
The calendar for the year is published in advance on the Federal Reserve's official website (federalreserve.gov, under monetary policy and FOMC calendars). Use that page as the source for FOMC meeting dates, because third-party calendars can carry errors or out-of-date times. An economic calendar is useful to see the meeting next to other releases in the same week.
The statement is released in the afternoon, US Eastern time. In Pakistan this falls late in the evening or at night. The exact local time shifts when the US changes its clocks for daylight saving, so check the time each meeting.
What each meeting publishes
The policy statement
A short text giving the decision on the rate range, a view of the economy and the vote. Markets read it line by line against the previous statement. A changed or removed phrase can move prices as much as the decision itself. Wording that leans towards tighter policy is called hawkish, and wording that leans towards easier policy is called dovish (see hawkish vs dovish).
Implementation note
A technical document that sets the administered rates the Fed uses to keep the federal funds rate inside its range. Most retail traders skip it. Rates desks read it.
Press conference
The Chair takes questions shortly after the statement. Answers are unscripted, so this part often brings a second wave of volatility. Hints about future meetings are a form of forward guidance.
Summary of Economic Projections and the dot plot
At some meetings, roughly once a quarter, the Fed publishes participants' projections for growth, unemployment, inflation and the policy rate. The rate projections are shown as the "dot plot": each participant's anonymous view of the appropriate rate path. The dots are not a promise or a committee plan. Markets still compare them with what futures prices imply. Details are in Fed dot plot.
Minutes
A detailed record of the discussion is released a few weeks after each meeting. Minutes can move markets if they show the committee was more hawkish or dovish than the statement suggested.
Typical market sequence on decision day
The pattern below describes how markets often behave. It is not a forecast, and any meeting can break it.
- Before the release. Liquidity often thins and ranges narrow as traders wait. Spreads can widen on currency pairs, gold and indices.
- Statement release. Prices react within seconds. The size of the move depends on the gap between the decision and what the market had priced, not on the decision alone (see economic surprises). A fully expected decision with a hawkish change in wording can still lift the dollar.
- Projections, if published. The dot plot is read at the same moment as the statement and can dominate the reaction.
- Press conference. The first move is often extended, reduced or reversed as the Chair answers questions.
- Following sessions. Asian and European markets digest the outcome. US Treasury yields, the US Dollar Index, gold and stock indices often keep adjusting.
The usual direction, other things equal: a more hawkish outcome tends to support the US dollar and bond yields and weigh on gold and equity indices. A more dovish outcome tends to do the opposite. Risk sentiment, other central banks and data released the same week can override this link (see risk-on, risk-off).
Risk around FOMC releases
Fast moves, gaps and wider spreads around the statement mean that stop orders can fill at worse prices than set. Leveraged CFD and forex trading can lose money fast, and news releases increase that risk. Position sizing and stop placement are covered in risk management.
For readers in Pakistan, the local legal position matters too. On remittances, per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)). On offshore platforms, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. See law and regulators before acting on any platform.
FOMC and the State Bank of Pakistan
The SBP sets Pakistan's policy rate through its own Monetary Policy Committee on a separate calendar. The latest decision recorded on this site: SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). US rates affect global dollar funding and capital flows, so Fed decisions are part of the background for emerging-market currencies. See SBP rates and economy and interest rates and currencies.
Frequently asked questions
Where can I find official FOMC meeting dates?
On the Federal Reserve's official website, on its FOMC calendar page. It lists the scheduled meetings for the year and marks which ones include projections.
Does every FOMC meeting change rates?
No. Many meetings keep the rate range unchanged. The statement, projections and press conference can still move markets.
What is the difference between the statement and the minutes?
The statement is a short summary published on decision day. The minutes are a fuller record of the discussion, released a few weeks later.
Is the dot plot a forecast of Fed decisions?
It shows individual participants' views at that moment. It is not a commitment, and the path often changes from one set of projections to the next.
Why can the market fall after an expected decision?
Prices already reflect what was expected. The reaction comes from the surprise in wording, projections or the Chair's answers compared with that expectation.