This week, the Federal Open Market Committee (FOMC) — a division of the Federal Reserve responsible for setting monetary policy — met once again to evaluate the health of the economy and make key decisions regarding the federal funds rate.
Following a series of interest rate hikes between March 2022 and July 2023, which were intended to help reverse rising inflation, the Fed held its benchmark rate steady for over a year. However, in September, the Fed decided to lower the federal funds rate by a whopping 50 basis points. It cut its target rate by another 25 basis points in November and December.
These decisions impact not only how the economy functions as a whole but also everyday consumers, as they influence rates on savings accounts, credit cards, mortgages, and more.
Statements and forecasts released during FOMC meetings provide valuable information on the economic outlook. Knowing when the Fed meets to discuss monetary policy and make important decisions can help you get a snapshot of the economy’s overall health and adjust your own financial strategy accordingly.
Read more: Should you open a savings account or CD before the Fed’s next meeting?
The FOMC holds eight regularly scheduled meetings per year. Its most recent meeting took place Dec. 17-18, 2024. The next one is scheduled for late January
Here’s the Fed’s full meeting schedule for 2025:
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January 28-29
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March 18-19*
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May 6-7
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June 17-18*
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July 29-30
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September 16-17*
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October 28-29
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December 9-10*
* Meeting associated with a Summary of Economic Projections.
At these meetings, policymakers assess the health of the economy by evaluating economic indicators such as the Consumer Price Index (CPI), gross domestic product (GDP), and the unemployment rate to shape monetary policy.
The minutes of regularly scheduled meetings are released three weeks after the date of the policy decision. The live press conferences held by Federal Reserve Chairman Jerome Powell are also livestreamed and recorded.
Once each meeting concludes, the FOMC releases its policy decisions at 2 p.m. Eastern time. Then the Fed Chairman holds a press conference at 2:30 p.m.
Read more: How the Federal Reserve rate decision affects mortgage rates
The next meeting is expected to provide Americans with an update on the federal funds rate. The Fed lowered its target rate in September, November, and December 2024.
“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook,” the FOMC wrote in a recent statement. “The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
Experts believe that the Fed will reduce the federal funds rate again in 2025. However, the number and size of these rate cuts remains to be seen.
Read more: How much control does the president have over the Fed and interest rates?
It’s not possible to predict with certainty what the Fed will decide regarding the federal funds rate. That said, many economists expect additional rate cuts next year.
The FOMC holds eight regularly scheduled meetings per year. But this doesn’t necessarily mean the committee will decide to change rates at every meeting. Members assess the economy’s performance and the committee adjusts monetary policy accordingly.
The Fed’s current target range is 4.50%-4.75%.
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