FOMC stands for Federal Open Market Committee, and the FOMC Meeting is the regular meeting held by this committee.
1. Who are they?
The FOMC is the branch of the Federal Reserve of the United States (the Fed), the central bank of that country, responsible for making decisions about monetary policy.
It is composed of 12 members: the 7 members of the Board of Governors of the Federal Reserve (including its chair, Jerome Powell, at this time) and 5 of the 12 presidents of the regional Federal Reserve Banks (with a rotation system).
2. What Is Its Main Objective?
The FOMC works to achieve a dual mandate established by the U.S. Congress:
Maximum Employment: Seeking conditions that allow the greatest number of people to have a job.
Price Stability: Keeping inflation under control, generally with a target of 2%.
3. What Do They Decide in the Meeting? (The Federal Funds Rate)
The most important decision made at the FOMC meeting is to raise, lower, or maintain the target range for the Federal Funds Rate (FFR).
How Does It Affect? This rate is the interest rate that banks charge each other for overnight loans. It is the main tool of the Fed to control the money supply:
If they raise the rate (Contractionary Policy): They tighten borrowing conditions, make money more expensive, seek to cool the economy and combat inflation.
If they lower the rate (Expansionary Policy): They make money cheaper, seeking to stimulate economic activity and employment.
4. When Do They Meet and Why Is It Important?
Frequency: The FOMC meets eight times a year, approximately every six to eight weeks, although they may call emergency meetings if necessary.
Importance: The decisions and, above all, the statement or communiqué issued after the meeting, are vital for the markets. Investors and traders analyze every word to predict the future direction of interest rates and, by extension, the global economy.
How Does It Affect the Crypto Market?
The decisions of the FOMC have a significant impact on risk assets like Bitcoin and cryptocurrencies:
High Rates (Strong Dollar): When the Fed raises or maintains high rates, the dollar strengthens and investors tend to seek safer assets (like Treasury bonds), which often puts downward pressure on speculative assets like cryptocurrencies.
Low Rates (Weak Dollar): When the Fed lowers rates, it injects liquidity into the system, prompting investors to seek higher returns in risk assets, often benefiting the crypto market.
🗓️ The last FOMC meeting was from October 28 to 29, 2025.
The next scheduled FOMC meeting is from December 9 to 10, 2025.