Fed Meeting | FOMC | Federal Open Market Committee Meeting

The FOMC is a 12 member committee that meets 8 times a year to decide short term monetary policy.  The Federal Funds Rate, the rate banks charge other banks for short term [usually overnight] money, sets the stage for all rates.  Lower rates result in more liquidity and should stimulate the economy.  Higher rates should slow the economy.  When inflation feared the Fed usually tightens their policy by raising interest rates.  The Federal Funds Rate does not directly correlate with the long term fixed rates.  Long term fixed rates enemy is inflation, stimulating the economy can increase inflation risk.  On the other hand, lowering the Fed Funds Rate is a sign that the economy is weak.  A weak economy is good for mortgage rates.  The FOMC Meeting has an ELEVATED impact on mortgage rates.