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FOMC (Federal Open Market Committee)

The FOMC (Federal Open Market Committee) is a component of the Federal Reserve System responsible for overseEINg open market operations, which influence Money Supply and Interest Rates in the U.S. economy. The FOMC meets regularly to assess economic conditions and set monetary policy to promote maximum employment, stable prices, and moderate long-term Interest Rates.

Examples of FOMC actions include:

Interest Rate Adjustments: The FOMC may raise or lower the Federal Funds Rate to control inflation or stimulate economic growth.
Quantitative Easing: During economic downturns, the FOMC might purchase government Securities to increase Liquidity in the financial system.

Cases:

In response to the 2008 financial crisis, the FOMC implemented several rounds of Quantitative Easing to stabilize the economy.
In 2020, amid the COVID-19 pandemic, the FOMC slashed Interest Rates to near-zero and announced emergency lending programs to support markets and the economy.