What the FOMC is
The FOMC (Federal Open Market Committee) is the branch of the US Federal Reserve responsible for setting US monetary policy — most importantly, the federal funds rate, which is the benchmark interest rate that influences borrowing costs throughout the US economy. It's made up of the Fed's Board of Governors plus a rotating group of regional Federal Reserve Bank presidents.
For anyone with exposure to the US dollar — which, given the dollar's role in global trade, is most businesses paying or receiving international invoices in some form — FOMC decisions are one of the most consistently market-moving events on the calendar.
How often it meets
The FOMC meets eight times a year, roughly every six weeks, on a pre-published schedule known well in advance. Each meeting concludes with a rate decision and a statement, and four of the eight meetings are followed by a press conference from the Fed Chair and an updated set of economic projections (often called the "dot plot," showing where individual committee members expect rates to head).
Why this moves currency markets so much
Interest rates are one of the primary drivers of currency value, because higher rates tend to attract foreign capital seeking better returns, increasing demand for the currency. When the Fed raises, holds, or cuts rates — or even just signals it might do so in the future — it directly affects how attractive the dollar is relative to other currencies.
Critically, it's often not just the decision itself that moves markets, but how it compares to what was already expected. If the Fed does exactly what economists predicted, the market reaction can be muted, since that expectation was already priced in. But if the decision or the accompanying language surprises the market — a more aggressive or more cautious tone than expected — currency pairs can move sharply within minutes of the announcement.
What actually gets released
At each FOMC conclusion, watch for:
The rate decision itself — whether the federal funds rate target range is raised, lowered, or held steady, usually in increments of 0.25%.
The statement language — the wording used to describe the economic outlook and future intentions often matters as much as the rate decision itself. Markets parse subtle changes in phrasing closely.
The press conference (on meetings where one is held) — the Fed Chair takes questions from journalists, and off-the-cuff answers can sometimes move markets more than the prepared statement, since they're less carefully controlled.
The dot plot (on meetings with updated projections) — shows individual committee members' rate expectations for future periods, giving the market a sense of the likely path ahead, not just the decision made today.
What this looks like in practice for a USD invoice
If your business pays or receives invoices in USD, an FOMC decision landing during your payment window can meaningfully shift what that invoice actually costs in your home currency — sometimes by more in a single afternoon than the currency typically moves in a week of normal trading. This is true whether you're converting USD to pay a US supplier, or converting USD received from a US customer back into your home currency.
This is exactly the kind of event worth knowing about in advance if you have a payment due around the announcement date, rather than discovering after the fact that the rate moved sharply on the day you happened to convert.
How to keep track of upcoming FOMC dates
The Federal Reserve publishes its full meeting schedule well in advance on its own website, typically for the following one to two years. Most financial calendars and economic data providers also list upcoming FOMC dates alongside other major releases.
Within Easier FX, any invoice with a due date falling near an FOMC decision is automatically flagged in your event horizon, along with the historical average move that decision type has caused for your specific currency pair — so you don't need to separately track the Fed's calendar by hand.
See how Easier FX flags FOMC and other major events for your specific invoices →