The Federal Reserve’s meeting starting today (25 January 2022) is the major event investors will be closely watching. Markets are hoping for more guidance on the Fed’s plan to raise interest rates, and when it will start.
Here’s what to know about the Fed meeting, what markets are expecting, and how likely it is that the Fed will raise rates in March.
1: What is the FOMC?
The
Federal Open Market Committee, or FOMC, is the Fed’s monetary policymaking body. There are twelve members in total.
- Seven members of the Board of Governors of the Federal Reserve System;
- The president of the Federal Reserve Bank of New York;
- Four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis.
2: What is the FOMC’s objective?
The FOMC’s role is to formulate and implement policies to:
- Keep prices stable
- Encourage economic growth
Essentially, the FOMC manages money supply in the United States....
