Macro Policy · Core
Federal Open Market Committee
The FOMC is the Fed body that sets the funds-rate target and the balance-sheet stance — the US rates committee.
Definition
Twelve voting seats (Board plus rotating presidents) meet on a published calendar, release a statement, a SEP/dots (quarterly), and a press conference. Implementation is through ON RRP, SRF, IORB, and the desk.
Why it matters
The front end of the USD curve is an FOMC path. Guidance and the dots move more than the 25bp on the day.
Case
December 2018 and 2021–22 pivots: the statement adjective changed and the curve repriced more than the move on the day.
How to read it
Statement vs dots vs presser. The median dot is not a commitment. Watch dissent and the reaction function, not the adjective alone.
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