Credit Card Glossary: Terms and Definitions
Confused by credit card terms? CreditCards.com's glossary of credit card definitions will help. From account holder to Regulation Z, we have defined the most-common and most-confusing credit card terms.
- Federal Open Market Committee
- The Federal Open Market Committee (FOMC) is a branch of the Federal Reserve Board that determines the direction of monetary policy for the United States. The committee consists of 12 members and holds eight regularly scheduled meetings per year. Members set the federal funds rate, a key interest rate set precisely 3 percentage points lower than the prime rate. The prime rate, in turn, is used to set interest rates on most variable interest credit cards. So if you hear "the Fed raised rates," that really means the Federal Open Market Committee has voted to raise the federal funds rate, and the interest rate on your credit card could go up.