FOMC (Federal Open Market Committee)

The FOMC is the group within the Federal Reserve (America's central bank) that decides interest rate policy. Think of them as the people steering the economy's gas pedal and brakes. You'll hear about FOMC meetings because their decisions ripple through stock markets, bond prices, and your savings account. When they raise rates, borrowing gets more expensive, which can slow down companies' growth. When they lower rates, money becomes cheaper to borrow, which often boosts stock prices. For example, if the FOMC signals they'll keep rates high to fight inflation, investors might sell growth stocks and buy bonds instead. Retail investors watch FOMC announcements closely because they're among the biggest market movers of the year.