The Federal Open Market Committee (FOMC) is a committee within the Federal Reserve System that is responsible for overseeing the nations open market operations and setting monetary policy in the United States. The FOMC is composed of twelve members, including the seven members of the Board of Governors of the Federal Reserve System, the president of the Federal Reserve Bank of New York, and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis. The FOMC holds eight regularly scheduled meetings per year, during which the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth. The FOMC sets monetary policy by specifying the short-term objective for the Feds open market operations, which is usually a target level for the federal funds rate. The FOMC also directs operations undertaken by the Federal Reserve System in foreign exchange markets, although any intervention in foreign exchange markets is coordinated with the U.S. Treasury. The FOMC issues a policy statement following each regular meeting that summarizes the Committees economic outlook and the policy decision at that meeting. The FOMC meetings are important events for traders, as any change in federal fund rates can affect a range of economic variables such as short-term interest rates, foreign exchange rates, long-term interest rates, employment output, and prices of goods and services.