The Federal Open Market Committee

Question

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The Federal Open Market Committee (FOMC) is responsible for setting the Federal Funds rate target, which is the interest rate at which banks lend to each other overnight. The FOMC consists of the Federal Reserve Board and the President of the Federal Reserve Bank of New York, along with four other Reserve Bank Presidents who serve on a rotating basis. The FOMC meets about eight times per year to assess economic conditions and make decisions about monetary policy, including the target Federal Funds rate.