FOMC stands for the Federal Open Market Committee, which is a committee within the United States Federal Reserve System that is responsible for implementing monetary policy in the country. The FOMC is comprised of 12 members, which includes the seven members of the Board of Governors of the Federal Reserve System and five of the twelve Federal Reserve Bank presidents. The committee meets approximately every six weeks to assess the state of the economy and to determine whether any changes to monetary policy are necessary.
One of the key tools that the FOMC uses to implement monetary policy is the federal funds rate, which is the interest rate at which banks lend reserve balances to each other overnight. The FOMC sets a target range for the federal funds rate, and it uses open market operations to influence the actual rate. If the FOMC wants to lower the federal funds rate, for example, it can purchase government securities from banks, which increases the banks’ reserves and lowers the federal funds rate. Conversely, if it wants to raise the federal funds rate, it can sell government securities to decrease bank reserves and increase the rate.
The decisions made by the FOMC can have a significant impact on the economy and financial markets. Changes in monetary policy can affect interest rates, inflation, and economic growth, among other factors, and investors closely monitor the committee’s actions and statements for indications of future policy changes.
FOMC Meeting Dates 2024
- January. 30-31.
- March. 19-20*
- Apr/May. 30-1.
- June. 11-12*
- July. 30-31.
- September. 17-18*
- November. 6-7.
- December. 17-18*
* Meeting associated with a Summary of Economic Projections.
