When is the FOMC Meeting and Announcement? - IG

The Federal Open Market Committee (FOMC) meeting is a regular session held by the members of the Federal Open Market Committee, a branch of the Federal ... CFDsareleveragedproducts.CFDtradingmaynotbesuitableforeveryoneandcanresultinlossesthatexceedyourdeposits,sopleaseconsiderourRiskDisclosureNoticeandensurethatyoufullyunderstandtherisksinvolved. CFDsareleveragedproducts.CFDtradingmaynotbesuitableforeveryoneandcanresultinlossesthatexceedyourdeposits,sopleaseconsiderourRiskDisclosureNoticeandensurethatyoufullyunderstandtherisksinvolved. Weusearangeofcookiestogiveyouthebestpossiblebrowsingexperience.Bycontinuingtousethiswebsite,youagreetoouruseofcookies.Youcanviewourcookiepolicyandedityoursettingshere,orbyfollowingthelinkatthebottomofanypageonoursite. Agree MorefromIG Private Institutional Academy Help Inbox Academy Help Login Createliveaccount Myaccount MyIG Inbox Academy Help Private Institutional Logout Menu English English Français Deutsch Italiano Search Noresultsfound Viewmoresearchresults 12345678910 Relatedsearch:MarketData MarketData Typeofmarket SeeallMarketdatasearchresults> Marketinsight Financialevents FOMCmeeting JeromePowell FederalReservemeeting EverythingyouneedtoknowabouttheFederalOpenMarketCommittee(FOMC)meeting–includingwhenitisandwhyit’simportanttotraders. Createdemoaccount Createliveaccount Call+41(0)588107742totalkaboutopeningatradingaccount.We’reherefromMondaytoFridayfrom9amto6pm. Contactus:+41(0)588107742 FederalReservemeeting On26September,theFOMCannouncedthatitwouldbeincreasingitstargetforthefederalfundsratetoarangeof2.00-2.25%.Findoutwhenthenextmeetingis,andwhyit’ssoimportantfortraders. Createdemoaccount Createliveaccount Call+41(0)588107742totalkaboutopeningatradingaccount.We’reherefromMondaytoFridayfrom9amto6pm. Contactus:+41(0)588107742 Established1974313000+clientsworldwide17000+markets WhatistheFederalOpenMarketCommitteemeeting? TheFederalOpenMarketCommittee(FOMC)meetingisaregularsessionheldbythemembersoftheFederalOpenMarketCommittee,abranchoftheFederalReservethatdecidesonthemonetarypolicyoftheUnitedStates. Afterdeliberatingonshort-termmonetarypolicy,theFOMCwilldecideonatargetfederalfundsratethattheybelievewillachievetheiraims. WhytradeFOMCmeetingswithus? World’sNo.1CFDprovider1 SpeculateonmajordollarcrosseswithCFDtrading ExtendedhoursonUSstocks TradeoutofhoursonkeyUSstocksandindices–includingWallStreet Effectiveriskmanagement Protectyourcapitalwithourrangeofstops,limitsandalerts Fedmeetingdates TheFOMCwilltypicallymeeteighttimesayear,althoughthereisscopeforadditionalmeetingsifrequired.Whileanypolicychangesareannouncedimmediately,themeetingsarealwayssecret,withminutesreleasedthreeweeksaftereachsession. 2021FOMCdates Date Minutesreleased 26-27January 17February 16-17March 7April 27-28April 28April 15-16June - 27-28July - 21-22September* - 2-3November - 14-15December* - *Meetingsaretentativeuntilconfirmedattheprecedingsession. WatchlivecoveragewithIGBank YoucanfollowtheannouncementasithappenswithLiveWithTheExperts,whenyouopenanIGBankaccount. Createaccount HowdoestheFedmeetingaffecttraders? TheFOMCmeetingisusuallyconsideredthemostimportantdateonanytraders’calendar,foroneoverridingreason:interestrates. Usingatrioofpolicytools,theFOMCcanraiseorlowerthefederalfundsrateintheUS. Thiscentralratechangewilltrickledowntootherinterestrates,includingFXratesandbondprices,whichcanhaveabigimpactontraders. WhichmarketsareaffectedbytheFOMC? IftheFOMCchoosestoraiseorlowerinterestrates,theeffectswillreverberateacrossglobalfinancialmarkets.Hereareafewspecificmarketstowatchoutfor: Forex:AnyinterestchangewillplayoutontheUSdollar,byfartheworld’smosttradedcurrency. Indices:Higherratestendtobebadforshares,whilelowerratescanbeaboon. Bonds:USbondsareoftenwherethefalloutfrominterestchangesisfeltmostdirectly. SotradersandinvestorsaroundtheworldwillattempttopredictwheremonetarypolicyisheadednextineachFedmeeting,andadjusttheirstrategiesandportfoliosaccordingly. FindoutmoreabouthowtheFOMCaffectsinterestrates. liveprices.javascriptrequired Pricesabovearesubjecttoourwebsitetermsandconditions.Pricesareindicativeonly.Allsharespricesaredelayedbyatleast15mins. Whatisthefederalfundsrate? Thefederalfundsrateistheinterestratethatbankschargeeachotherforovernightloans,meaningthatiteffectivelyactsasthebaseinterestratefortheUSeconomy.Changestothefederalfundsratewillimpactshortandlong-terminterestrates,forexrates,andeventuallyeconomicfactorslikeunemploymentorinflation.This,inturn,willplayoutacrosstheglobaleconomy. HowdoestheFOMCaffectthefederalfundsrate? Whileitdoesn’thaveadirectsayovertherateschargedbybankstolendmoneytoeachother,theFOMCcanindirectlychangethefedfundsrateusingthreepolicytoolsthataffectmoneysupply.Theseareopenmarketoperations,thediscountrate,andreserverequirements. TheFOMCisspecificallyinchargeofopenmarketoperations,whiletheFederalReserveBoardisinchargeofthediscountrateandreserverequirements. Openmarketoperations Openmarketoperationsarethebuyingandsellingofgovernmentbondsontheopenmarket. WhentheFOMCwantstodecreasemonetarysupplyitwillsellbonds,takingmoneyoutoftheeconomyandinturnraisinginterestrates.Whenitwantstoincreasemoneysupply,itwillbuybonds,injectingmoneyintotheeconomyandloweringrates. Thediscountrate Aswellasborrowingthismoneyfromeachotheratthefederalfundsrate,bankscanborrowmoneydirectlyfromtheFederalReserveitself. TheinterestrateabankwillhavetopaytoborrowfromtheFediscalledthediscountrate.Alowerdiscountratewillencouragealowerfederalfundsrate,andviceversa. Reserverequirements Reserverequirementsarethepercentageofabank’sdepositsfromcustomersthatithastoholdinordertocoverwithdrawals. Ifreserverequirementsareraised,thenbankscanloanlessmoneyandwillaskforhigherinterestrates.Iftheyarelowered,thentheoppositehappens. FederalReservequantitativeeasing Quantitativeeasing(QE)isanextrameasurethattheFedcanapplyintimesofseverefinancialcrisis.Itisusuallyonlyusedoncetheabovepolicytoolshavebeenexhausted–thefederalfundsrateisnearzero,andeconomicgrowthisstillfaltering.WhatdoestheFeddonext? Infunction,QElooksfairlysimilartoopenmarketoperations.TheFOMCbuyssecuritiesontheopenmarket,injectingmoneydirectlyintothesystem.However,therearetwokeydifferencesbetweenthetwo: Differentassetsarebought.Insteadoffocusingonshort-termbonds,theFOMCwillusuallybuylongertermsecurities,toreduceratesoverthelongtermaswellastheshortterm Theaimisdifferent.Whileopenmarketoperationsareintendedtolowerthefederalfundsrate,QEpurchasesaimtomassivelyincreasemoneysupplybyaddingtotheFed’sreserves Afterthe2008recession,theFedundertookaseriesofQEprogrammes,pouringtrillionsofdollarsintotheUSeconomy.However,it’sunclearhowmuchQEhelpedtheUSeconomyrecover. FOMCkeypeople TheFOMCcanincludeuptosevenmembersoftheFederalReserveBoard,plusfiveregionalFederalReserveBankpresidents. ThesevenboardmembersareallappointedbytheUSpresident,andtheboardchairusuallyservesasthechairoftheFOMC.ThefivebankpresidentsconsistofthepresidentoftheFederalReserveBankofNewYork–whoalsoservesastheFOMCvice-chair–plusfourothers,rotatedonayearlybasis. AnalystswillsometimesclassifyFOMCmembersasmonetaryhawksanddoveswiththeaimofpredictingtheoutcomeofmeetings. 2021committeemembers Member Title JeromeH.Powell Chairman,FederalReserveboardofgovernors RichardH.Clarida Vicechairman,FederalReserveboardofgovernors(bankpresident,NewYork) RandalK.Quarles Vicechairofsupervision LaelBrainard FederalReserveboardofgovernors MichelleW.Bowman FederalReserveboardofgovernors ChristopherJ.Waller FederalReserveboardofgovernors Vacant FederalReserveboardofgovernors Vacant FederalReserveboardofgovernors ThomasBarkin Bankpresident,Richmond CharlesEvens Bankpresident,Chicago RaphaelBostic Bankpresident,Atlanta MaryDaly Bankpresident,SanFrancisco Openanaccountnow Fastexecutiononahugerangeofmarkets Enjoyflexibleaccesstomorethan17000globalmarkets,withreliableexecution Dealseamlessly,whereveryouare Tradeonthemovewithournativelydesigned,award-winningtradingapp Feelsecurewithatrustedprovider With45yearsofexperience,we’reproudtoofferatrulymarket-leadingservice Createdemoaccount Createliveaccount Youmightbeinterestedin… Forextrading Indicestrading Sharestrading LearnhowtotradethereactiontoFOMCmeetingsacross90currencypairs BuyorsellWallStreetandtheUS500,24hoursaday Golongorshorton17000globalstocks,includingAppleandFacebook LiveWithTheExperts:November'sFeddecision 1BasedonrevenueexcludingFX(publishedfinancialstatements,June2020). 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