FOMC

In plain terms

It is the meeting that sets US interest rates. Twelve members vote: the seven Fed governors, the president of the New York Fed, and four of the other eleven regional Fed presidents on a rotating basis. Meetings run over two days, with the decision released at 2 p.m. Eastern time on the second day.

Why it matters

Because the dollar is the world's main reserve currency, US rates shape money flows everywhere. FOMC decisions ripple into other countries' rates, exchange rates and emerging-market stocks. The March, June, September and December meetings also publish the "dot plot" of members' rate projections, a key guide to the expected path of rates.

How it connects to markets

• The statement wording and the chair's press conference often matter more than the decision itself, because markets look for hints about the next meeting
• Hawkish signals: yields and the dollar tend to rise; stocks, gold and bitcoin tend to come under pressure
• Dovish signals: yields and the dollar tend to fall; risk assets tend to benefit
• The number and direction of dissents also offer clues about the next move

Where to check

• Federal Reserve FOMC meeting calendar