Yield Theory
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Macro

FOMC

The FOMC (Federal Open Market Committee) is the body within the Federal Reserve that sets U.S. interest-rate policy and directs open-market operations that steer the money supply.

The Federal Open Market Committee is made up of the Fed's Board of Governors plus a rotating group of regional Reserve Bank presidents. Eight scheduled meetings a year produce the rate decisions that anchor short-term borrowing costs.

Alongside each decision, the committee publishes a statement and, quarterly, a set of economic projections including the closely watched dot plot of expected future rates. Traders position around these releases because even small changes in tone can move markets.

For a capital-flows lens, the FOMC is where the direction of dollar liquidity is decided. Its guidance often matters more than the immediate rate change itself.

Example

A single dovish word in an FOMC statement can send bond yields lower and equities higher within minutes.

FOMC — FAQ

What is FOMC?

The FOMC (Federal Open Market Committee) is the body within the Federal Reserve that sets U.S. interest-rate policy and directs open-market operations that steer the money supply.

Can you give an example of FOMC?

A single dovish word in an FOMC statement can send bond yields lower and equities higher within minutes.

Understanding creates conviction.

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