What Is FOMC?
The FOMC (Federal Open Market Committee) is the body within the Federal Reserve System responsible for setting US monetary policy. Composed of the 7 Board of Governors members and 5 Federal Reserve Bank presidents, the FOMC meets eight times per year (roughly every 6 weeks) to decide on interest rates, quantitative easing/tightening, and forward guidance.
How FOMC Works
FOMC meetings follow a structure: two days of deliberation, a rate decision announcement at 2:00 PM ET, and a press conference by the Fed Chair at 2:30 PM ET. The statement is parsed word by word for changes in language. Minutes from each meeting are released three weeks later and provide additional detail on the committee's thinking.
Why It Matters for Traders
FOMC days are the most important scheduled events on the crypto calendar. Crypto volatility compresses in the hours before the announcement and explodes after. The press conference often creates a second wave of volatility as the Chair's Q&A reveals nuance not in the written statement. Many professional traders reduce position sizes before FOMC and wait for the dust to settle before re-engaging.
