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Home Forex There are no Federal Reserve speakers this week – it’s the pre-FOMC ‘blackout’ period
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There are no Federal Reserve speakers this week – it’s the pre-FOMC ‘blackout’ period

The Federal Reserve blackout period is a designated time frame during
which Federal Reserve officials are restricted from making public
comments about monetary policy. This period is meant to prevent any
unintended influence on financial markets ahead of key policy
decisions.

Key Features of the
Blackout Period:

Timing:

  • The blackout period
    begins on the second Saturday before a Federal Open Market Committee
    (FOMC) meeting and
  • Ends on the Thursday
    following the meeting (or at midnight Eastern Time if the FOMC
    meeting is on a Wednesday).

Restrictions:

  • No public speeches,
    interviews, or discussions on monetary policy.
  • Officials cannot
    discuss economic outlooks, interest rates, or related policy
    decisions.
  • Private discussions
    with market participants are also discouraged.

Purpose:

  • Prevents Fed
    officials from influencing markets through last-minute comments.
  • Ensures that policy
    decisions are based on data and discussion rather than speculation.
  • Helps maintain
    credibility and avoid confusion about upcoming interest rate changes.

Exceptions:

  • Routine
    communications and reports may still be released.
  • Officials can
    discuss non-monetary policy topics, but they typically avoid media
    engagements entirely.

This article was written by Eamonn Sheridan at www.forexlive.com.

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