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How might the FOMC statement (following the committee's meeting) stabilize financial markets more than if no...

How might the FOMC statement (following the committee's meeting) stabilize financial markets more than if no statement were provided?

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The Federal Open Market Committee (FOMC) held its meeting eight times in a year. The objective of the meeting is to forecast the money supply and adjust the interest rate. In the situation of uncertainty, the Fed can also hold a conference call meeting. In the meeting. each member recommends the federal fund target and the decision is taken on the basis of this recommendations.

After the FOMC meeting, a statement of conclusion is provided by the committee. The statement provided by the committee is useful indicator of the economic activity. The participants in the financial market use this statement along with other information to forecast the economic activity. The statement states the details whether this is an improvement over the previous year or not. If this is in favor of the participants, then this can bring stability in the economy.

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