When does the Federal Reserve typically announce its interest rate decision?

Hello there, regarding when the Federal Reserve announces its interest rate decisions, this actually follows a very regular pattern, much like checking the weather forecast – there are fixed release times. Once you understand it, you too can track the event like a pro.

Federal Reserve Interest Rate Decision Announcement Times: Key Points to Remember

Simply put, you can think of it as a fixed process: Meeting -> Discussion -> Outcome -> Announcement. What we're most interested in is that final "Announcement" stage.

• Meeting Frequency: The Fed holds eight meetings a year, roughly every six weeks (one and a half months). This schedule is steadfast.

• Announcement Day: Meetings typically last two days (Tuesday and Wednesday), and the interest rate decision is always announced on the second day of the meeting, which is local time Wednesday.

• Exact Time: Here's the most crucial detail! The time is fixed at 2:00 PM Eastern Time (ET).

• Conversion to Beijing Time: Due to Daylight Saving Time and Standard Time in the US, the corresponding time for us will vary slightly:

  • During Daylight Saving Time (approximately March to November each year): Thursday 2:00 AM Beijing Time
  • During Standard Time (approximately November to March the following year): Thursday 3:00 AM Beijing Time

So, if you just remember "Thursday early morning, 2 or 3 AM", you generally won't miss it.

More Than Just Announcing a Number

Many friends who are new to following this might think that at that specific time, the Fed simply announces "rates are going up" or "rates are not changing," and then it's over. However, that's not the case. It's more like a "press conference package," primarily consisting of three parts:

1. Policy Statement - 2:00 PM ET Exactly at 2:00 PM ET, the Federal Reserve will release a written document on its official website. This statement announces the latest interest rate decision, explains the rationale behind it, and provides their view on the current economic situation. This is the most direct and core information.

2. Press Conference - 2:30 PM ET The real "main event" often begins half an hour later. The Federal Reserve Chair (currently Jerome Powell) holds a press conference. Journalists from around the world will ask him questions, including many tricky ones. His answers, his tone, and even a single choice of words can reveal clues about the future direction of monetary policy. Markets often react sharply to specific remarks he makes, so everyone listens intently.

3. Economic Projections and the 'Dot Plot' - (Available at specific meetings) During four particularly important meetings each year—in March, June, September, and December—the Federal Reserve also simultaneously releases a Summary of Economic Projections, which includes the well-known "Dot Plot". You can think of the "Dot Plot" as an "anonymous vote" from Federal Reserve officials. Each dot represents an official's projection for the federal funds rate over the next few years. By observing the distribution of these dots, the market can infer the overall internal sentiment within the Fed regarding future rate hikes or cuts.

How Can I Find Out When the Next Meeting Is?

The most reliable way is to check the Federal Reserve's official website directly. You can search for "FOMC meeting calendar" (FOMC stands for the Federal Open Market Committee, which makes the rate decisions) in a search engine. The first result is usually the Fed's official meeting calendar, which clearly lists all meeting dates for the entire year.

In a Nutshell

Pay attention to Thursday 2:00 AM or 3:00 AM Beijing Time. First, review the policy statement, then half an hour later, tune into Chair Powell's press conference. This is essentially the complete process for understanding the Federal Reserve's interest rate decisions.