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 who set the baseline cost of borrowing money in the entire U.S. economy. You'll hear about FOMC meetings in financial news because their decisions ripple through stock markets, bonds, and your savings account. When they raise rates, borrowing gets more expensive and stocks often fall. When they lower rates, money flows more freely and stocks may rise. The FOMC meets roughly every six weeks to review economic data and vote on whether to adjust rates. For example, if inflation is running hot, the FOMC might raise rates to cool things down—which could pressure growth stocks but help savers.