What is the Shadow Open Market Committee (SOMC)?

The Shadow Open Market Committee (SOMC) is a group of economists that provides critical analysis of Federal Open Market Committee (FOMC) decisions.

How Does the Shadow Open Market Committee (SOMC) Work?

Founded by two economists from Carnegie Mellon University and the University of Rochester, the Shadow Open Market Committee (SOMC) analyzes and critiques the monetary policy and decisions of the Federal Open Market Committee (FOMC). Comprising members from academic as well as private sector backgrounds, the SOMC meets twice each year to review actions taken by the FOMC and to analyze the effectiveness of those actions. Additionally, the SOMC uses its analyses as a basis for issuing monetary policy recommendations to the FOMC.

Why Does the Shadow Open Market Committee (SOMC) Matter?

The SOMC provides a well-informed third-party perspective on FOMC decisions as far as their overall economic effect. However, history has shown that the actions of the FOMC are not closely tied to the recommendations of the SOMC.

Ask an Expert about Shadow Open Market Committee (SOMC)

All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Shadow Open Market Committee (SOMC).

Be the first to ask a question

If you have a question about Shadow Open Market Committee (SOMC), then please ask Paul.

Ask a question
Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

Verified Content You Can Trust
verified   Certified Expertsverified   5,000+ Research Pagesverified   5+ Million Users