Federal Open Market Committee FOMC
The FOMC meets eight times a year to set key interest rates, such as the discount rate. They also makes decisions about the money supply and the increasing (or decreasing) of it. By buying and selling government securities (typically interest rate products such as bonds, bills and notes) they can effect the supply of money. to tighten the money supply, for example, the would sell securities.
The meetings are top secret and are the subject of much speculation by traders across the globe. The market always shows a dramatic increase in volatility on an intra-day basis when the results of this meeting are announced, even when the results are exactly what are expected.
The committee consists of the 7 members of the Federal Reserve Board and the presidents of each of the 12 Federal Reserve Banks. It's important to note that at any given time only 5 of the 12 presidents of the Federal Reserve Banks are able to vote at any of the meetings.
To understand more read the article Fed Days.
If you want to see charts of how the E-mini S&P500 market reacted on previous fed days then look at Fed Day Charts.
Check the Economic Events Calendar to see if this or other announcements are taking place in the next 5 days.
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