Federal Open Market Comittee Meeting in United States

The Federal Open Market Committee (FOMC) meeting at which the Federal Reserve sets the US policy rate (the federal funds target range), the benchmark price of money.

The FOMC meets eight times a year. It assesses inflation, employment and financial conditions and sets the federal funds target range; the decision comes with a statement and, at alternating meetings, economic projections and a press conference.

Arguably the single most market-moving decision worldwide: rates, the dollar and risk assets. A hike or a hawkish tone lifts the dollar and yields and weighs on equities; cuts do the opposite.

The decision is usually anticipated, so markets react more to the tone and forward guidance than to the rate move itself. Its effectiveness also depends on coordination with fiscal policy.