#FOMCMeeting FOMC meetings
The **FOMC (Federal Open Market Committee) Meeting** is a crucial event for global financial markets. It's where the monetary policy arm of the U.S. central bank, the Federal Reserve, meets to discuss economic conditions and make decisions on key interest rates and other monetary policy tools.
Here's a breakdown:
**What is the FOMC?**
The Federal Open Market Committee (FOMC) is composed of twelve members:
* The seven members of the Board of Governors of the Federal Reserve System.
* The President of the Federal Reserve Bank of New York (who always has a vote).
* Four of the remaining eleven Federal Reserve Bank presidents, who serve one-year terms on a rotating basis.
**What Happens at an FOMC Meeting?**
The FOMC meets eight regularly scheduled times a year (approximately every six weeks), and sometimes holds unscheduled meetings if economic conditions warrant immediate action. During these meetings, committee members:
* **Review economic and financial conditions:** They analyze a wide range of data, including inflation, employment, GDP growth, and international developments.
* **Discuss the economic outlook:** They assess the current state and future trajectory of the U.S. economy.
* **Make decisions on monetary policy:** Their primary decision involves setting the target range for the **federal funds rate**, which is the benchmark interest rate that influences other interest rates throughout the economy (like mortgage rates, car loans, etc.). They also discuss other tools like the Fed's balance sheet (quantitative easing/tightening).