Whenever FOMC news comes out, the financial markets immediately brace for turbulence. I’ve seen this happen many times—stock prices, gold, bonds—all affected simultaneously. But what’s puzzling is why this meeting has such a huge influence, and what exactly is FOMC?

It’s true that the Federal Reserve’s Federal Open Market Committee, or FOMC, is at the heart of global monetary decision-making. It consists of 12 officials whose job is to set monetary policy through the money markets to achieve two main goals: price stability (measured by inflation rate) and employment.

I’ve noticed that most investors don’t understand what FOMC really is. On a deeper level, they miss the opportunity to read market signals. For example, when FOMC decides to buy government bonds, it’s injecting more money into the system. The market recovers, but inflation follows. Conversely, selling bonds pulls money out, helping control inflation but slowing economic growth.

Another important tool is adjusting the Fed Funds Rate, which is the overnight interest rate banks use to lend to each other. If this rate is high, banks will reduce borrowing, causing money supply to contract. If it’s low, banks borrow more, and money flows into the market more.

What I find interesting is the Dot Plot that FOMC releases each time. It’s a chart showing each member’s view on future interest rates. By analyzing this graph, investors can anticipate FOMC’s decision trends in advance.

FOMC meetings are held eight times a year, roughly every six weeks, over two days, with results announced on the last day around 2:00 PM local time in the U.S. If you compare that to Thailand, it’s about 2:00 AM the next day.

To sum up what FOMC is: it’s a committee that controls global money supply by adjusting interest rates and liquidity in the financial system. No matter where investors are in the markets, they must follow their moves because it truly impacts everything.