FOMC (Federal Open Market Committee)

The Federal Open Market Committee (FOMC) is a branch of the Federal Reserve System responsible for overseeing the nation's open market operations, which include the buying and selling of government securities. The FOMC plays a crucial role in setting U.S. monetary policy, particularly by influencing short-term interest rates and the supply of money in the economy.

The FOMC meets regularly to assess the state of the U.S. economy and to make decisions about key policy measures, such as the federal funds rate, which affects interest rates across the entire economy. These decisions are closely watched by Forex traders, as changes in U.S. interest rates can have significant impacts on the value of the U.S. dollar and, consequently, on global currency markets.

FOMC meetings and the minutes released afterward are important events in the Forex calendar, often leading to increased market volatility as traders react to new economic data and policy shifts. Understanding the role and actions of the FOMC is essential for Forex traders who focus on fundamental analysis and macroeconomic trends.