John Murray
Helpful habit to build: put big scheduled events like the FOMC decision on your calendar ahead of time, so you aren't surprised when things move fast. Knowing when they happen is half the preparation.
What is the federal funds rate, and why does the whole market watch the Fed's decision
Discussion
this Wednesday?
The federal funds rate is the interest rate banks charge each other for overnight loans. The Federal Reserve's rate-setting group, the Federal Open Market Committee (FOMC), sets a target range for it, and that choice ripples out into what people pay on credit cards, car loans and mortgages, and what savers earn. The FOMC has eight scheduled meetings a year, and the next decision is due Wednesday, Oct 28 at 2:00 p.m. ET (3:00 a.m. Thursday in Korea), with the Chair's press conference 30 minutes later.
Why traders care: higher rates make borrowing cost more and make safe, interest-paying assets more attractive, which can pull money away from stocks, gold and crypto. Lower rates tend to work the other way. At its Sept 15-16 meeting, the FOMC voted 12-0 to raise the range by a quarter point (25 basis points, where one basis point is 0.01%) to 3.75%-4.00%. Going into this week, fed funds futures tracked by CME's FedWatch tool show most traders expecting no change. Those odds are market bets, not a Fed promise, and they change every day. Prices often react more to surprises, like the statement's wording or the press conference, than to an outcome everyone already expected.
Beginner habit: know when big scheduled events are on the calendar, and expect prices to move fast and jump around right after them. Got questions about the Fed, rates or basis points? Ask below. There are no silly questions here.
Sources: Federal Reserve FOMC meeting calendar (federalreserve.gov); FedRateCalc FOMC schedule and Sept 16, 2026 vote summary; CME FedWatch data via Growbeansprout (as of Oct 25, 2026).