The United States Federal Reserve holds Federal Open Market Committee meetings 8 times every year to decide the base policy rate at which the US Fed lends money to various banks and financial institutions in the United States.
The meeting plays a critical role in establishing the US Monetary Policy because it controls the supply of money entering the US economy which then impacts job creation, inflation, economic production and public debt.
As a result, the rates are decided on the basis of how all these factors would react to them. Primarily, the concern of the meeting is to keep inflation in check (below 2%) while ensuring there is a consistent increase in the number of jobs in the US economy.
Members in the Meeting
The meeting is headed by 11 members including the Federal Reserve Board Chairman, Vice Chair who is the President of the New York Federal Reserve, four Federal Reserve Presidents (out of 11) who serve on year wise rotating basis and five Federal Reserve Board Members.
- Federal Reserve Board of Governors Chairman – Jerome Powell
- Vice Chairman – President of the Federal Reserve Bank of New York – John C. Williams
- Board of Governors
- Michael S Barr
- Michelle W Bowman
- Lisa D Cook
- Phillip N Jefferson
- Adriana D Kugler
- President of Federal Reserve Bank (currently Boston) – Susan M Collins
- President of Federal Reserve Bank (currently Chicago) – Austin D Goolsbee
- President of Federal Reserve Bank (currently St Louis) – Alberto G Musalem
- President of Federal Reserve Bank (currently Kansas City) – Jeffery R Schmid
Meeting Schedule in 2025
1. Jan 28-29
Outcome
The interest rates were kept constant because inflation for the month of December was high at 2.9%, much above Fed’s mandate to keep it below 2%. Further, there were no significant changes in US Job openings.
Minutes
The Fed also guided that the US Federal Funds Rate (interest rates) has a very low room for a cut based on expectations of high inflation (around 3% est.) throughout 2025. This decision led to a panic sell in the crypto markets after Trump became the US President. By the first week of Feb, markets were already around $3 trillion after losing $800 billion in market cap.
2. March 18-19
Outcome
Fed Minutes (Guidance)
3. May 6-7
4. June 17-18
5. July 29-30
6. September 16-17
9. October 28-29
8. December 9-10
Frequently Asked Questions
What is the current range of the FOMC interest rate?
At present (March 2025) the US Federal Reserve interest rate is at 4.25% to 4.5%, which is known as the window of interest rate with repo rate at 4.5% and reverse repo rate at 4.25%.
Who Controls the Federal Reserve?
A board of 6 Governors control The US Federal Reserve System, which is an independent body composed of 12 Federal Reserve Banks in
1. Boston
2. New York
3. Philadelphia
4. Cleveland
5. Richmond
6. Atlanta
7. Chicago
8. Louis
9. Minneapolis
10. Kansas City
11. Dallas
12. Francisco
