FOMC (Federal Open Market Committee)

The Federal Open Market Committee (FOMC) is the monetary policymaking body of the U.S. Federal Reserve System. It consists of 12 voting members: the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York (permanent voter), and four of the remaining 11 Reserve Bank presidents who rotate annually. The committee meets eight times per year — roughly every six weeks — to assess economic conditions and set the target range for the federal funds rate, which is the overnight interest rate banks charge each other on reserve balances. Through this single rate, the FOMC influences borrowing costs across the entire economy: mortgages, business loans, credit cards, and bond yields. Beyond rate decisions, the FOMC also directs open market operations (buying and selling Treasury securities), manages the Fed's balance sheet, and shapes forward guidance — the central bank's communication about likely future policy. At four of its eight annual meetings (March, June, September, December), the FOMC releases the Summary of Economic Projections (SEP) showing each participant's forecasts. FOMC decisions are among the most market-moving events in global finance; even subtle shifts in language from the Chair's post-meeting press conference can move trillions of dollars in asset values within minutes.