#FOMCMeeting

FOMC Meeting: What You Need to Know

The Federal Open Market Committee (FOMC) is the policymaking arm of the U.S. Federal Reserve. Its meetings, held about eight times a year, are closely watched by investors, economists, and the public because they influence interest rates, inflation, and the overall direction of the U.S. economy.

In each meeting, the FOMC reviews economic data such as employment, inflation, and GDP growth. Based on this analysis, it decides whether to raise, lower, or maintain the federal funds rate—a key interest rate that affects borrowing costs across the economy.

A rise in interest rates usually helps control inflation but can slow down economic growth. A cut in rates can boost economic activity but may risk higher inflation. The FOMC's statements and decisions often move financial markets immediately.

With inflation still a concern and growth showing signs of cooling, recent FOMC meetings have focused on balancing economic stability with price control. The committee’s next steps will be crucial for shaping the U.S. economic outlook in the months ahead.

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