FED Meetings (a.k.a. FOMC)

A brief introduction to the Fed

The Federal Reserve is the central banking system of the United States of America.

Its goal is to "promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."

The Central Bank achieves these goals through a wide set of tools: setting interest rates, injecting liquidity via QE, setting liquidity requirements for commercial banks - and more.

The body that governs the policy action of the Fed is called the FOMC: Federal Open Market Committee.

The committee is charged under United States law with overseeing the nation's open market operations and basically decides and publishes all major decisions by the Fed.

Why are Fed Meetings important?

The FOMC meets with a regular cadence that is announced well in advance for the year.

Such meetings can be at times momentous, especially when they signal shifts in monetary policy. Therefore it is important to look ahead for them and be prepared, as they can signal meaningful shifts in market trends.