#FOMCMeeting What is the FOMC? The Federal Open Market Committee is the Fed’s main policy panel. Its 12 members meet about eight times a year to set U.S. interest rate policy.
Interest rates and inflation: The FOMC’s goal is to keep prices stable and jobs strong. Its long-run inflation target is about 2%. If inflation is above target, the Fed raises rates to cool price growth; if the economy weakens, it may cut rates to encourage spending.
2025 outlook: After many rate hikes, inflation cooled to around 2.4% in early 2025. In March 2025, the Fed kept rates at 4.25–4.50% and signaled two small (0.25%) cuts likely later in the year.
Impact on everyday life: Fed rate decisions affect your wallet and the job market. The Fed’s interest rate influences mortgage and car loan rates. Higher Fed rates make loans pricier (slowing inflation), while lower rates make borrowing cheaper. These changes affect home and car payments, credit-card rates and even jobs$ETH