Economy: FOMC

FOMC: Here is a look at how the FOMC operates, according to Times Colonist. A: Its mission is to keep the economy, inflation and employment on a healthy track. When the economy weakens, Fed policymakers cut interest rates or keep them low. The lower interest rates are aimed at promoting increased borrowing and spending by consumers and businesses to spur economic growth. When the economy grows so fast that inflation becomes a threat, Fed policymakers raise rates or keep them high. That makes it costlier for people to get loans and means less borrowing and spending. Economic activity slows and inflation pressures ease and The Federal Reserve's chief policymaking group, the Federal Open Market Committee, has vast power over the economy through its ability to set monetary policy. Q: What is the FOMC's primary role? (www.immigrantscanada.com). As reported in the news.