The FOMC (Federal Open Market Committee) is a group within the U.S. Federal Reserve that makes important decisions about the economy—especially about interest rates. These meetings happen eight times a year and are closely watched by investors, businesses, and governments around the world.
What Does the FOMC Do?
The main job of the FOMC is to control inflation, support job growth, and keep the U.S. economy stable. It does this by adjusting the interest rate, which affects how expensive it is to borrow money.
If inflation is too high, the FOMC may raise rates to slow down spending.
If the economy is weak, it may lower rates to encourage borrowing and growth.
Why It Matters
The FOMC’s decisions can affect:
Loan and mortgage rates
Stock markets
Currency values
Jobs and wages
Even small changes—or just hints about future changes—can move global markets.
What Happens During the Meeting?
FOMC members review the latest economic data, such as inflation, employment, and global trends. Then, they vote on what action to take. After the meeting, a statement is released and sometimes followed by a press conference from the Fed Chair.