By TheStreet Staff What Is the Federal Open Market Committee (FOMC)? How Does It Work?The central bank of the United States is known as theFederal Reserve. While it operates independently of the federal government and has no political affiliation, it may be one of the most powerful committees in the world. The Federal Reserve, or the Fed, as it’s known for short, is responsible for ensuring a strong American economy and healthy levels of employment by managing fiscal policies. Most people know the Fed as being synonymous withinterest rates—particularly when they go up. But it does so much more…