The Federal Reserve (the Fed) is the central bank of the United States. Its Federal Open Market Committee (FOMC) sets US monetary policy, including the target range for the federal funds rate, at scheduled meetings several times a year. FOMC decisions, statements and press conferences can coincide with higher volatility and wider spreads.
Also called: Fed, FOMC, Federal Open Market Committee, US central bank, federal funds rate, Fed funds rate
Hypothetical example
Hypothetically, the FOMC keeps its target range between 3.00% and 3.25%, as forecast, and the calendar lists the Fed chair's press conference as a separate event.
