How to Trade FOMC Meetings

Overview

FOMC rate decisions create explosive volatility. Learn the timeline, what to watch in the statement and press conference, and how to position before and after. Use our economic calendar to track every scheduled FOMC meeting date. Pair this guide with proven trading strategies and key technical indicators to navigate the post-decision whipsaw.

Key Takeaways

• Decision at 2:00 PM ET, press conference at 2:30 PM ET — the full move can take 30-90 minutes to play out.
• The statement diff matters — compare exact wording changes to the previous meeting's statement.
• Initial reaction is often wrong — the 'whipsaw' after Chair Powell speaks frequently reverses the first move.
• Implied volatility gets crushed after the event — options sellers often benefit.

Practical Tips

• Reduce position sizes pre-FOMC — the initial spike can blow through stop-losses.
• If you trade options, consider selling strangles into FOMC vol-crush (advanced only).
• The 24 hours after FOMC often set the trend for the next 2-4 weeks — follow-through matters more than the knee-jerk.