#FOMCMeeting The **FOMC (Federal Open Market Committee)** is a very important part of the **Federal Reserve**, which is the central bank of the United States. Think of them as the main decision-makers for U.S. money policy.

**What they do:**

* **Set Interest Rates:** Their most watched decision is setting the target range for the **federal funds rate**. This is the benchmark interest rate that influences nearly all other interest rates in the economy – from mortgage rates and car loans to credit card interest and savings account yields.

* **Manage Money Supply:** They decide whether to buy or sell U.S. government securities in the open market. This is called **open market operations**. By buying securities, they put money into the financial system (increasing the money supply), which tends to lower interest rates. By selling securities, they take money out (decreasing the money supply), which tends to raise interest rates.

* **Economic Assessment:** At their meetings, they carefully review the current economic and financial conditions, including inflation, employment, and growth. They also assess risks to their long-term goals.

**Their Goals (The Dual Mandate):**

The FOMC has two main goals given to them by Congress:

1. **Maximum Employment:** This doesn't mean zero unemployment, but the lowest sustainable unemployment rate without causing inflation.

2. **Price Stability:** This typically means keeping inflation (the rate at which prices rise) at a low and stable level, usually targeting around 2%.

**Why FOMC meetings are important:**

* **Market Impact:** Their decisions on interest rates and monetary policy have a massive impact on financial markets worldwide – affecting stocks, bonds, currencies (especially the US Dollar), and even commodity prices like gold and oil.

* **Economic Direction:** Their policies guide the overall direction of the U.S. economy, influencing everything from borrowing costs for businesses and consumers to job growth and the cost of living.