2024 FOMC Meeting Dates: When is FOMC Meeting Starting?

What is The Federal Open Market Committee (FOMC)?

The Federal Open Market Committee (FOMC) operates as part of the Federal Reserve System of the United States. Its mandate is to decide on the direction of monetary policy. The committee comprises 12 members, the president of the Federal Reserve Bank of New York, seven people from the Board of Governors, and four other 11 Reserve Bank presidents, who serve in turns rotating

FOMC Dates of Meeting

The FOMC holds eight regularly scheduled meetings per year. The Federal Reserve publicly displays the FOMC meeting dates on its website. The next meeting is scheduled for January 30-31, 2024. Federal Chair, Jerome H. Powell, issues a statement and a summary of economic projects after each meeting, followed by a press conference.

*Meetings remain tentative until officially confirmed during the preceding session.

Why Does This Matter?

Decisions made by FOMC significantly impact the economy and the financial markets, the reason they are closely monitored by policymakers, analysts, and investors. The body mostly determines the federal funds rate range, which affects banks interest rate at which they lend to each other for short-term loans. Ultimately,  it impacts on other interest rates, affecting consumer and business borrowing costs.  Additionally, FOMC decides on the composition and size of the Fe’ds balance sheet, directly impacting the amount of money in circulation within the economy.

During the December 2023 FOMC meeting, the Federal Reserve (Fed) decided to maintain its policy rate within the range of 5.25% to 5.5%. According to the Fed’s statements, there are indications of three quarter-point cuts expected in the year 2024.

What Guides the FOMC?

Economic indicators serve as the compass for FOMC decisions. Factors like GDP growth, unemployment rates, inflation figures, consumer spending, business investments, trade balances, and financial market conditions all play a role. Global economic factors and feedback from the public further inform the committee’s considerations.

FOMC’s Monetary Policy Objectives

The FOMC operates with a clear set of goals, often termed the “dual mandate.” This involves promoting maximum employment, maintaining stable prices, and ensuring moderate long-term interest rates. To achieve these objectives, the committee employs a flexible, forward-looking, and data-dependent approach, prioritizing transparency and accountability in their decision-making process.