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The Federal Open Market Committee (FOMC) is an institution within the Fed responsible for regulating US monetary policy. Therefore, it plays a crucial role in maintaining price stability and controlling inflation.
One of the FOMC's roles in regulating monetary policy significantly impacts the global economy, financial markets, capital markets (stocks), and the crypto market. Every policy/decision made by the FOMC will have both positive and negative impacts. For example, US monetary policy is currently used as a benchmark for other countries. For example, an increase in US interest rates can attract investment from other countries to the US, which ultimately strengthens the value of the USD. Conversely, a decrease in interest rates can increase borrowing and consumption, but this can potentially lead to inflation.
One of the FOMC's roles in regulating monetary policy significantly impacts the global economy, financial markets, capital markets (stocks), and the crypto market. Every policy/decision made by the FOMC will have both positive and negative impacts. For example, US monetary policy is currently used as a benchmark for other countries. For example, an increase in US interest rates can attract investment from other countries to the US, which ultimately strengthens the value of the USD. Conversely, a decrease in interest rates can increase borrowing and consumption, but this can potentially lead to inflation.