Open Market Committee

The Open Market Committee, often part of a country's central bank, is responsible for setting monetary policy to help manage the economy. It primarily influences interest rates and controls the money supply by buying or selling government securities in the open market. When the committee buys securities, it injects money into the economy, which can lower interest rates and stimulate spending. Conversely, selling securities removes money from circulation, potentially raising interest rates to curb inflation. The committee's decisions aim to balance economic growth, inflation, and employment levels to ensure overall economic stability.