Question: What is FOMC and Why it is so important that it affects financial markets dynamically?
The FOMC is the monetary policy-making body of the Federal Reserve System.
The committee’s primary responsibility is to undertake action to influence the supply and cost of money.
In FOMC meetings, the members of the Committee review the economic and financial conditions of the U.S economy in order to conduct its monetary policy and promote maximum employment, stable prices and moderate long-term interest rates in the US.
The Fed conducts the monetary policy by managing the short-term interest rates directly, and indirectly, this affects the stock prices, wealth and the currency exchange rates.
