Apiary Fund Blog

Live Trading the FOMC - 20 Mar

[fa icon="calendar"] Mar 20, 2019 6:05:00 AM / by Lukas MacMacKen

The Federal Open Market Committee (FOMC) is the body in charge of Monetary Policy for the Federal Reserve. Currently, Jerome Powell is the Chairman of the 12 member board which is composed of 7 board members and 5 Reserve Bank presidents out of the 12 total reserve banks. The FOMC releases many critical announcements for the U.S. economy and its growth. Today, the release will be 8 times per year interest rate announcement and rate statement along with a quarterly Economic Projection.

 

These three announcements are all occurring at the same time, which is 2:00 PM EDT. These announcements, along with the follow up announcement of the FOMC press conference discussing the announcements that 30 minutes earlier and discussing possible future changes. All of these announcements will be traded live for you to watch on the Apiary Fund YouTube channel. Apiary Fund will go live with their head trader, Shawn Lucas, just before 2:00 PM EDT to discuss the announcement and projections before beginning trading at the start of the announcement.

For more on what to expect at the start of the trading session tomorrow, the Federal Fund rates the FOMC will be announcing are set to remain the same at 2.50%. This 2.50% has been the rate since the December 2018 announcement when it was raised from 2.25%. Since December 2016, when it was announced that the Fed Rates would be increased from 0.50% to 0.75%, June through November 2017 has been the longest stretch one interest rate has lasted with four announcements holding the rate constant. If today’s announcement holds steady as projected at 2.50%, this will be the second longest stretch of time interest rates haven’t changed since that December 2016 date with three announcements being the same rate. The FOMC statements, which detail how the votes for interest rate change panned out along with reasoning for the votes will be critical in seeing if the next vote on rates is to change them, or keep them the same.

 

The economic forecast is a substantial event as well. This is a quarterly announcement that details how the FOMC sees the next two years play out in the economy. This, along with the rate statement, can provide information on the next interest rate announcement and if they are raised, lowered, or kept the same. On top of how the next two years looks, the economic forecast also includes what each FOMC member sees the interest rates being and likely how they will vote for interest rates in the future.

 

To watch this trading session and see exactly how these types of major news events are traded, click here. We will be live ~15 minutes before 2:00 PM EDT.  You an also watch the recording through the same link.

Topics: News Events, FOMC, Live Trading

Lukas MacMacKen

Written by Lukas MacMacKen

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