AI Hub 20 April 2023 How does the Federal Open Market Committee (FOMC) impact forex trading? The Federal Open Market Committee (FOMC) is the monetary policy-making body of the United States Federal Reserve System. It consists of twelve members, seven from the Board of Governors and five from the regional Federal Reserve Banks. The FOMC is responsible for setting interest rates, controlling money supply and regulating banking activities in order to promote economic growth and stability. As such, it has a major impact on currency markets around the world. In this article, we will explore how FOMC decisions can affect forex trading. Interest Rates One of the most important tools used by the FOMC to control economic activity is setting interest rates. When interest rates are low, businesses have access to cheaper capital which encourages investment and growth. On the other hand, when interest rates are...
