The Federal Reserve. Love it or hate it, it’s likely here to stay. The FOMC meets eight times a year. In 2022, they raised the federal funds rate 7 times. So far, with already one meeting down in 2023, there have been eight consecutive rate increases. Are there more to come this year?
The Federal Open Market Committee (FOMC) Meeting Schedule 2023:
- January 31-February 1
- March 21-22
- May 2-3
- June 13-14
- July 25-26
- September 19-20
- October 31-November 1
- December 12-13
The Federal Reserve, also known as the Fed, is the central bank of the United States and is responsible for regulating the country's monetary policy. One of the key tools that the Fed uses to manage monetary policy is through setting interest rates, which can affect borrowing and lending rates for businesses and consumers.
The Federal Reserve typically holds eight regularly scheduled meetings each year to discuss and decide on monetary policy, including interest rate decisions. These meetings are usually held over two days, and include a press conference and a statement released to the public.
During these meetings, the Federal Reserve's policymaking committee, known as the Federal Open Market Committee (FOMC), reviews economic data and other factors that may affect the country's economic outlook. The committee examines a variety of indicators, including gross domestic product (GDP), inflation rates, employment data, and consumer spending, among others.
Based on this analysis, the FOMC makes decisions regarding monetary policy, including whether to raise or lower interest rates. Interest rates can affect the cost of borrowing and lending, which can have a significant impact on the economy and financial markets. Lower interest rates can stimulate economic growth by making it easier and cheaper for businesses and consumers to borrow money, while higher interest rates can help to control inflation and prevent an overheated economy.
In addition to interest rate decisions, the FOMC may also discuss other policy tools, such as quantitative easing, which involves purchasing government securities to inject money into the economy. This can help to increase the money supply and stimulate economic activity.
After each meeting, the Federal Reserve releases a statement summarizing the committee's discussions and decisions. The statement provides insights into the FOMC's thinking and can be used by investors and economists to make predictions about future monetary policy changes.
Overall, the Federal Reserve meetings play a crucial role in shaping the country's monetary policy and do have a significant impact on the economy and financial markets. As a result, investors and economists closely follow these meetings and announcements to stay informed about potential changes to interest rates and other policy decisions.
Let me know your thoughts on the Fed and if you think our country’s financial well being would be better off without them.
