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The Federal Open Market Committee — the group inside the Fed that votes on interest rates.
Why It Matters
The FOMC is where U.S. interest-rate decisions actually happen. It meets eight times a year, votes on a target for the federal funds rate, and releases a statement explaining its view of the economy. Those statements are among the most closely watched events in markets because they shape the cost of money everywhere.
Key Points
- Meets eight times a year on a published schedule
- Releases a policy statement after each meeting, plus quarterly projections (the "dot plot")
- Decisions are made by vote, not by the Chair alone
Learn More
How the Fed Sets Interest Rates
Get a complete explanation with examples, key takeaways, and a quiz to test your knowledge.
Related Terms
Common Questions
The Federal Open Market Committee — the group inside the Fed that votes on interest rates. The FOMC is where U.S.
The FOMC is where U.S. interest-rate decisions actually happen. It meets eight times a year, votes on a target for the federal funds rate, and releases a statement explaining its view of the economy. Those statements are among the most closely watched events in markets because they shape the cost of money everywhere.
Meets eight times a year on a published schedule
Releases a policy statement after each meeting, plus quarterly projections (the "dot plot")
Decisions are made by vote, not by the Chair alone