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Macro Education

FOMC & Interest-Rate Decisions

The FOMC sets the stance of U.S. monetary policy. Markets react not only to the rate decision, but also to the statement, projections, balance-sheet guidance and communication.

What the FOMC does

The Federal Open Market Committee is responsible for open-market operations and plays the central role in setting the federal funds rate target range. It meets regularly to assess economic and financial conditions.

What traders watch

  • Rate decision.
  • Policy statement language.
  • Economic projections and the dot plot when released.
  • Press-conference tone.
  • Balance-sheet or liquidity guidance.

How policy affects markets

Changes in policy expectations can influence short- and long-term yields, the U.S. dollar, credit conditions, equities, gold and crypto. The same decision can produce different reactions depending on what markets expected beforehand.

2026 context snapshot

As of the July 29, 2026 FOMC statement, the Committee maintained the target range for the federal funds rate at 3.50%–3.75%. This is a dated context snapshot, not a live feed; always check the latest official statement before making conclusions.

Sources & further reading

ZigWave AI summarizes concepts in original educational language. External sources remain the property of their publishers.