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FOMC statement

FOMC statement is the financial statements about economic policies in the U.S. The FOMC (Federal Open Market Committee) is a Federal Reserve committee that is in charge of the economic policies. The committee holds a meeting every 6 weeks approximately on a regular basis and additional meetings can be summoned if needed. In every meeting the committee discusses issues of financial policies and economic developments and releases a statement with the decision taken in the committee. The statement they issue after every meeting is known as the FOMC statement. The stated mission of the FOMC committee is to monitor the economic situation and follow the macroeconomics targets while maximizing employment and stable prices. The main tool the committee has is the adjustment of the short term interest rate in the United States. The analysis and the outlook of the committee is very thorough and many traders read the full summary and do not only follow the bottom line interest rate. A good FOMC statement usually strengthens the U.S. Dollar and a bad FOMC statement weakens the Dollar against other currencies.

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