The primary purpose of meetings of the FOMC is to:

Question

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The primary purpose of meetings of the Federal Open Market Committee (FOMC) is to decide on the target federal funds rate, which is the interest rate at which depository institutions lend to each other overnight. The FOMC influences this rate through its monetary policy decisions, such as buying or selling government securities in the open market to increase or decrease the supply of money and credit in the economy. The required reserve rate, discount rate, and prime rate are also important policy tools, but they are typically set separately from the FOMC meetings by the Board of Governors or regional Federal Reserve Banks.

The Primary Purpose of Meetings of the FOMC Is To