FOMC (Federal Open Market Committee)

The FOMC is a group of Federal Reserve officials who meet roughly every six weeks to decide interest rates and other monetary policies that affect the entire economy. You'll hear about FOMC meetings constantly in financial news because their decisions directly impact stock prices, bond yields, and inflation. When the FOMC raises interest rates, borrowing becomes more expensive, which can slow economic growth and hurt stock valuations. Conversely, lowering rates tends to stimulate the economy and boost stocks. For example, if the FOMC signals they'll keep rates low, investors might get excited and buy more growth stocks, while a surprise rate hike could trigger a market selloff. Think of them as the economy's main control panel.