FOMC Minutes
What is FOMC Minutes?
The Federal Open Market Committee (FOMC) meets 8 times per year to set the federal funds rate target range — the benchmark interest rate that influences borrowing costs across the entire US economy. The decision is announced at 2:00 PM ET, followed by a press conference with the Fed Chair at 2:30 PM ET.
Why does it matter for investors?
Rate decisions directly impact equity valuations through the discount rate applied to future earnings. Higher rates compress P/E multiples on growth stocks (QQQ heavy), while rate cuts tend to lift equities broadly. The statement language and dot plot — released at the March, June, September, and December meetings — often drive more volatility than the rate number itself.
What to watch for
- ›Rate decision vs. market expectations (CME FedWatch futures pricing)
- ›Statement language: "data dependent," "higher for longer," or any dovish pivot signals
- ›Updated dot plot — shifts in median 2026/2027 rate projections move markets
- ›Powell's tone in the press conference Q&A session
- ›QQQ and 2-year Treasury yield reaction in the first 30 minutes post-announcement
How many times does the FOMC meet per year?
The FOMC meets 8 times per year, approximately every 6 weeks. Four of those meetings (March, June, September, December) also include updated economic projections and the dot plot.
What time is the FOMC rate decision announced?
The FOMC rate decision statement is released at 2:00 PM Eastern Time. The Fed Chair holds a press conference at 2:30 PM ET.
How does the Fed rate decision affect QQQ and SPY?
Rate hikes generally pressure growth stocks (QQQ) by raising the discount rate on future earnings, while rate cuts tend to boost equities. SPY is less rate-sensitive than QQQ due to its higher weighting in value and dividend-paying sectors.
Market Reaction
QQQ & SPY price change ±5 trading days around this event
Source: Yahoo Finance