The Federal Open Market Committee (FOMC) is the monetary policymaking body of the Federal Reserve System. It is responsible for determining the direction of monetary policy in the United States by directing open market operations, which involves buying and selling U.S. government securities to influence the availability and cost of money and credit12. The FOMC consists of 12 members, including seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining 11 Reserve Bank presidents, who serve on a rotating basis23. The FOMC holds eight regularly scheduled meetings per year, at which it reviews economic and financial conditions and determines the appropriate stance of monetary policy14. The committee's decisions have a significant impact on the economy, as they influence interest rates, the money supply, and ultimately, economic growth, employment, and prices15.
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