What is the FOMC Meeting? and Why It Matters for Crypto?
What is the FOMC Meeting?
The FOMC meeting is a regular session held by the Federal Open Market Committee (FOMC), a branch of the Federal Reserve that decides on the monetary policy of the United States. At these meetings, the FOMC reviews economic and financial conditions, assesses the risks to its long-term goals of price stability and sustainable economic growth, and determines the appropriate stance of monetary policy.
The FOMC holds eight regularly scheduled meetings during the year and other meetings as needed. The FOMC meeting schedule for 2023 is as follows:
- January 31-February 1 (Tuesday-Wednesday)
- March 21-22 (Tuesday-Wednesday)
- May 2-3 (Tuesday-Wednesday)
- June 13-14 (Tuesday-Wednesday)
- July 25-26 (Tuesday-Wednesday)
- September 19-20 (Tuesday-Wednesday)
- October 31-November 1 (Tuesday-Wednesday)
- December 12-13 (Tuesday-Wednesday)
All FOMC announcements will come at 2 pm US Eastern Time on the second day, followed by a press conference from Fed Chair Jerome Powell.
Why It Matters for Crypto?
The FOMC meeting matters for finance and crypto because it affects the availability and cost of money and credit in the economy, which in turn influences the interest rates, foreign exchange rates, asset prices, and inflation expectations of investors and consumers.
The FOMC meeting also signals the outlook and confidence of the Federal Reserve on the economic recovery and growth prospects of the US, which can have a significant impact on the market sentiment and risk appetite of traders and speculators.
For example, if the FOMC decides to raise interest rates, this could lead to a stronger US dollar and weaker cryptocurrencies.
Policy and Regulation
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