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Federal Reserve meeting

Get the inside track on the Federal Open Market Committee (FOMC) meeting, including when it is and why traders pay it close attention.

What happened at the last Fed meeting?

At the last FOMC meeting on 19th March 2025, the Fed held interest rates steady at 4.25-4.50%. This continued Fed chair Jerome Powell's hawkish stance to fight US inflation, currently at 2.8% CPI.

Current federal funds rate

4.25 - 4.50%

When is the next Fed meeting?

The FOMC holds eight regularly scheduled meetings during the year and other meetings as needed. The minutes of the scheduled meetings are released three weeks after the date of the policy decision.

Date	Minutes released
28-29th January	19th February
18-19th March	9th April
6-7th May	28th April
17-18th June	9th July
29-30th July	20th August
16-17th September	8th October
28-29th October	19th November
9-10th December	31st December

What is the FOMC?

FOMC stands for Federal Open Market Committee, a branch of the US Federal Reserve. Members of the FOMC will meet at regular sessions to determine the monetary policy of the United States. This is referred to as the FOMC meeting, or simply the Fed meeting.

As well as dictating short-term monetary policy, the FOMC will agree upon a target federal funds rate (effectively the base interest rate for the US economy) which they believe will achieve their aims.

How does the Fed meeting affect markets?

The FOMC meeting and policy statement give a clear indication of the state of the US economy. This means they typically produce strong market movements in all areas, from stocks to bonds, and commodities such as gold.

Forex: Higher interest rates tend to make the US dollar more attractive for both domestic and global investors, which means any change in rates will likely impact the dollar’s value.

Commodities: The value of gold tends to fall if interest rates rise. This is because the precious metal becomes less attractive to investors when cash savings and assets like bonds are offering higher yields.

Stocks/indices: Higher rates can steer some investors away from stocks and into other areas such as cash. Lower rates may make stock trading more attractive as companies can use it to borrow more capital and drive growth.

Bonds: Bond prices tend to go down when interest rates rise and vice versa. However, the rate of increase or decline depends on bond maturity. The longer the maturity, the greater the drop if rates are hiked.

How to trade the Federal Reserve meeting

FOMC meetings tend to instigate price activity across markets, meaning they usually create plenty of trading opportunities. Day traders could look to take advantage of short-term volatility, both prior to the announcement and in the immediate aftermath. Alternatively, longer-term traders can develop strategies around higher or lower interest rates, expectations of higher or lower inflation, and the overall economic outlook.

Here are a few top tips for trading the FOMC meeting:

Know when the meeting is happening

Our economic calendar is a great resource for this. You can also check out the FOMC meeting calendar on the Federal Reserve website. As well as the main policy statement, it’s worth keeping an eye on when the minutes are released.

Check the market’s expectation

Is the Fed expected to hike rates, cut them, or hold steady? Check the opinion of market commentators, or analyse the United States’ recent economic performance and comments from past FOMC meetings.

Be ready for volatility

Markets can be volatile around the FOMC announcement. Get ready if rates are changed or expectations of a cut or raise aren’t met.

Get your risk-management sorted

Trading the FOMC meeting requires prudent risk management. Do your research and set up stop-losses and take-profit orders to help you manage your exposure.

Take a long-term view

Trading the FOMC isn’t just about short-term volatility - the decisions made also influence the wider economy long-term. Think aboutthe impact now and in the future.

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