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       #Post#: 268--------------------------------------------------
       FOMC Meeting Announcement
       By: fxvictory Date: December 10, 2014, 9:39 pm
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       Definition
       The Federal Open Market Committee (FOMC) is the policy-making
       arm of the Federal Reserve. It determines short-term interest
       rates in the U.S. when it decides the overnight rate that banks
       pay each other for borrowing reserves when a bank has a
       shortfall in required reserves. This rate is the fed funds rate.
       The FOMC also determines whether the Fed should add or subtract
       liquidity in credit markets separately from that related to
       changes in the fed funds rate. The Fed announces its policy
       decision (typically whether to change the fed funds target rate)
       at the end of each FOMC meeting. This is the FOMC announcement.
       The announcement also includes brief comments on the FOMC's
       views on the economy and how many FOMC members voted for and how
       many voted against the policy decision. Since the last
       recession, the statement also includes information on Fed
       purchases of assets, so-called "quantitative easing", which
       affects longer-term interest rates. Also, a key part of the
       announcement is guidance on potential changes in policy rates or
       asset purchases.
       Why Investors Care
       The Fed determines interest rate policy at FOMC meetings. These
       occur roughly every six weeks and are the single most
       influential event for the markets. For weeks in advance, market
       participants speculate about the possibility of an interest rate
       change at these meetings. If the outcome is different from
       expectations, the impact on the markets can be dramatic and
       far-reaching.
       The interest rate set by the Fed, the federal funds rate, serves
       as a benchmark for all other rates. A change in the fed funds
       rate, the lending rate banks charge each other for the use of
       overnight funds, translates directly through to all other
       interest rates from Treasury bonds to mortgage loans. It also
       changes the dynamics of competition for investor dollars. When
       bonds yield 5 percent, they will attract more money away from
       stocks than when they only yield 3 percent.
       The level of interest rates affects the economy. Higher interest
       rates tend to slow economic activity; lower interest rates
       stimulate economic activity. Either way, interest rates
       influence the sales environment. In the consumer sector, few
       homes or cars will be purchased when interest rates rise.
       Furthermore, interest rate costs are a significant factor for
       many businesses, particularly for companies with high debt loads
       or who have to finance high inventory levels. This interest cost
       has a direct impact on corporate profits. The bottom line is
       that higher interest rates are bearish for the stock market,
       while lower interest rates are bullish.
       The Fed also began quantitative easing during the past recession
       and continues during the recovery. Fed asset purchases affect
       longer-term interest rates and, in turn, other financial sectors
       and the economy.
       The Fed also began quantitative easing during the past recession
       and continues during the recovery. Fed asset purchases affect
       longer-term interest rates and, in turn, other financial sectors
       and the economy.
       Econoday lists a separate "FOMC Meeting Begins" only for the
       first day of two-day policy meetings. Otherwise, "FOMC Meeting
       Announcement" serves the same purpose for one-day FOMC meetings
       since the announcement takes place just after the meeting
       concludes.
       Frequency
       Eight times a year.
       Source
       Federal Reserve Board of Governors
       Availability
       FOMC meetings are scheduled for eight times a year, typically
       for late January, mid-March, late April, mid-June, late July,
       mid-September, late October, and mid-December.
       Coverage
       Not applicable.
       Revisions
       Not applicable.
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