Markets.com Logo
euEnglish
LoginSign Up

What is the FOMC?

Oct 10, 2023
2 min read
Table of Contents
  • 1. What is the FOMC?
  • 2. What does the FOMC do?
  • 3. Summary

what is the fomc

 

What is the FOMC?

FOMC stands for the Federal Open Market Committee (FOMC), which is a brand of the US Federal Reserve System (FRS).

The goal of the FOMC is to help determine US monetary policy, through directing open market operations (OMO). In practical terms, this simply means buying or selling US government securities.

Members of the committee include the president of the Federal Reserve Bank of New York, as well as seven members of the board of Governors and five Federal Reserve Bank Presidents.

The federal reserve is broken into 12 ‘districts’:

  • Boston
  • Philadelphia
  • Richmond
  • Cleveland
  • Chicago
  • St. Louis
  • Dallas
  • Atlanta
  • Kansas City
  • Minneapolis
  • San Francisco
  • New York

The New York president serves on the FOMC committee permanently, with the other district presidents rotating, serving terms on either a two-year (Cleveland and Chicago) or a three-year (everyone else) basis.

The current chair of the FOMC (as of May 23) is Jerome Powell, who has been in charge since May 2022.

 

What does the FOMC do?

 

what is the fomc

 

Eight times a year – or more frequently if they deem it necessary - the FOMC committee meet to decide if it’s necessary to make any short-term changes to US monetary policy.

Primarily, they look at whether the Federal Reserve needs to buy or sell more US government bonds. By choosing to buy or sell, the FOMC can control the country’s money supply, which can help to stimulate economic growth.

It can also impact a number of other key economic factors, including interest rates, exchange rates, inflation, and even credit availability.

Because of the potential impact on the wider economy, FOMC meetings are heavily publicised and scrutinised by financial analysts.

 

Summary

The FOMC is a branch of the US Federal Reserve System, responsible for directing open market operations in order to help direct the flow of money in the US economy.

FOMC meetings are heavily scrutinised, as the committee’s actions can impact several major economic factors such as inflation, available credit, interest rates and economic output.


Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

Shaun Edwards
Written by
Shaun Edwards
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    4.46%
  • EUR/USD

    chartpng

    --

    -0.12%
  • Cotton

    chartpng

    --

    -0.50%
  • AUD/USD

    chartpng

    --

    -0.25%
  • Santander

    chartpng

    --

    -1.87%
  • Apple.svg

    Apple

    chartpng

    --

    -0.52%
  • easyJet

    chartpng

    --

    -1.03%
  • VIXX

    chartpng

    --

    3.06%
  • Silver

    chartpng

    --

    3.53%
Tags DirectoryView all
Table of Contents
  • 1. What is the FOMC?
  • 2. What does the FOMC do?
  • 3. Summary

Related Articles

MicroStrategy (MSTR) Stock Forecast: What is the price target for MSTR 2025?

MicroStrategy (MSTR) Stock Forecast: MicroStrategy Inc. (MSTR), a prominent business intelligence company, has gained considerable attention in recent years, primarily due to its aggressive investment strategy in Bitcoin.

Ghko B|1 day ago

CrowdStrike Stock Prediction: What Is the Price Target for CRWD in 2025?

CrowdStrike Stock Price Prediction: CrowdStrike Holdings, Inc. (CRWD) has become a significant player in the cybersecurity sector, known for its innovative approach to threat detection and response.

Ghko B|1 day ago

Delta Stock Soars 12%: How to Trade Delta Stock CFDs?

Delta Stock Soars 12%: Delta Air Lines (DAL) has recently experienced a significant surge in its stock price, climbing by 12% in a single day.

Ghko B|1 day ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Regulation
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Finalto International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.