FOMC

FOMC means Federal Open Market Committee. In simple terms, the FOMC is the part of the Federal Reserve that makes key decisions about U.S. monetary policy. The FOMC is important because it sets the target range for the federal funds rate and influences financial conditions across the economy. Its decisions can affect loans, mortgages, stocks, bonds, and the dollar. For example, when news says the FOMC raised rates, it means the Fed’s policy committee decided to increase its target rate. The FOMC is not the same as the entire Federal Reserve system. It is the specific committee responsible for major monetary policy decisions.