The **Federal Open Market Committee (FOMC)** is the central body within the U.S. Federal Reserve System responsible for formulating and directing national monetary policy. Established by legislation in 1933 and 1935 as part of the Federal Reserve reforms, the FOMC was created to centralize and coordinate open market operations, which involve buying and selling government securities to influence liquidity and interest rates in the economy[1]. The FOMC's primary role is to set the "stance" of U.S. monetary policy to achieve the dual congressional mandates of **maximum employment** and **price stability**. It does so primarily by determining the target range for the federal funds rate—the interest rate at which banks lend to each other overnight—and directing open market operations that influence this rate and the overall money supply. These monetary policy tools shape credit availability and the cost of borrowing, thereby affecting economic growth, employment, inflation, and long-term interest rates[1][2][4]. The Committee consists of twelve members: the seven Board of Governors members, the president of the Federal Reserve Bank of New York, and four rotating presidents of other Federal Reserve Banks. This structure ensures a blend of national oversight and regional perspectives. The FOMC typically holds eight scheduled meetings annually, reviewing economic and financial conditions and adjusting policy to respond to evolving risks and opportunities[2][3][6]. Historically, the FOMC evolved from earlier coordination efforts among the twelve Federal Reserve Banks, formalized in the 1930s to enhance effectiveness and transparency. Notably, the FOMC’s implementation of monetary policy has adapted over time—from managing scarce reserves pre-2008 crisis to using new tools like the Overnight Reverse Repurchase Agreement (ON RRP) facility introduced in 2014 to help control interest rates[1][4]. The FOMC’s decisions are closely watched by investors, businesses, and policymakers worldwide due to their broad impact on financial markets and the economy. Its announcements often drive