The FOMC, or Federal Open Market Committee, is the branch of the Federal Reserve bank that is in charge of short and long-term monetary policy decisions.
The FOMC is best known for its decisions regarding the US base interest rate, which is decided upon eight times a year in one of the most important meetings on the economic calendar. During the last recession, the FOMC was also responsible for the United States’ quantitative easing program.
There are 12 members of the FOMC, seven of which are from the Board of Governors and are as such appointed by the President of the United States. The others are presidents of the Federal Reserve System’s regional central banks, and rotate on a yearly basis.
By regulating interest rates and money supply, the FOMC has a huge part to play in the state of US markets.
