What is #FOMCMeeting and why is everyone talking about it? 📊💬
Every few weeks, the economic world holds its breath in anticipation — the FOMC (Federal Open Market Committee) meeting is approaching 🇺🇸. This is the most significant event in the financial markets, and here's why 👇
📌 What is FOMC?
FOMC is the Federal Open Market Committee of the United States Federal Reserve (Fed). It determines the monetary policy of the U.S., including the key interest rate 💰📉📈.
📅 What happens at the meeting?
At each FOMC meeting:
The current state of the economy is analyzed 🧠📊
A decision is made on the interest rate (to leave it, raise it, or lower it) 💵⚖️
A statement is published with forecasts on inflation, employment, and economic growth 📃🔮
🤯 Why is this important?
📍 Stock Market: any hints of a rate hike = stock prices fall 📉
📍 Currency: the dollar strengthens with "hawkish" rhetoric 🦅
📍 Inflation: the Fed fights it by raising rates 💣
📍 Mortgage and loans: rates rise — loans become more expensive 🏠💸