I’m going to explain this in 4 slides. This is how I trade the FOMC News Event. If you’re a member of AIMS please login to the forum and head to the NEWS Trading Strategy Section to learn how to trade NEWS in general.

How to Trade the FOMC News Event   

The FOMC statement can sometimes awaken even the dead markets. Specially when there is a shock. 

What is an FOMC? 

The Federal Open Market Committee (FOMC) consists of twelve members–the seven members of the Board of Governors of the Federal Reserve System; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis.

What Is the Federal Open Market Committee (FOMC)?

The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve System (FRS) that determines the direction of monetary policy specifically by directing open market operations (OMOs).

When it is reported in the news that the Fed has changed interest rates, it is the result of the FOMC’s regular meetings. When that happens and the market is not expecting, the market MOVES. The market can get very volatile so beginners must stay away from trading during these times. 

Here is a screenshot from ForexFactory.com calendar. You