<p>The FOMC (Federal Open Market Committee) is a body within the US Federal Reserve responsible for setting monetary policy, primarily through influencing the federal funds rate. It consists of 12 members: the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four other Reserve Bank presidents who serve on a rotating basis.</p>
<p>The FOMC's decisions on interest rates significantly impact financial markets, influencing borrowing costs for businesses and consumers, and affecting the value of the US dollar in foreign exchange markets. For instance, in response to the COVID-19 pandemic, the FOMC slashed interest rates to near zero to support the economy, demonstrating the committee's crucial role in economic stabilization.</p>