Federal Open Market Committee (FOMC)
The Federal Reserve committee responsible for setting US monetary policy and interest rate decisions.
What is FOMC?
The Federal Open Market Committee (FOMC) is the policy-making body of the US Federal Reserve System responsible for setting monetary policy. It consists of 12 voting members: the 7 members of the Board of Governors, the president of the Federal Reserve Bank of New York, and 4 of the remaining 11 regional Federal Reserve Bank presidents (on a rotating basis). The FOMC meets eight times per year to review economic conditions and vote on the federal funds rate target and other policy tools including quantitative easing. Its decisions move global financial markets: FOMC announcements are among the most closely watched events in the financial world.
Example
At its July 2023 meeting, the FOMC raised the federal funds rate target to 5.25–5.50% — the highest level in 22 years — continuing its campaign against inflation. Markets closely analyzed the FOMC's statement and Chair Jerome Powell's press conference for signals about the pace and duration of future rate changes.
Source: Federal Reserve — FOMC