The FOMC’s role in overseeing open market operations includes providing regular economic updates to the public and managing monetary policy. The FOMC is made up of a dozen members: The 7 members of the Board of Governors, including the Fed Chair The President of the Federal Reserve Bank of New York, who is also the Vice President of the Fed
Full Answer
The Federal Open Market Committee (FOMC) consists of twelve members--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 Federal Open Market Committee (FOMC) conducts monetary policy by setting the target range for its policy rate -- the federal funds rate, the interest rate that banks charge each other for lending or borrowing reserve balances overnight.
Its voting membership combines the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four other Reserve Bank presidents, who serve one-year terms on a rotating basis with the other Reserve Bank presidents.
The FOMC is the Fed's monetary policy-making body. The Federal Open Market Committee (FOMC) is the Fed's monetary policy-making body. The FOMC has 12 voting members, including all seven members of the Board of Governors and a rotating group of five Reserve Bank presidents.
The main role of the FOMC is to control monetary policy. A consolidated report of economic conditions in each of the Federal Reserve districts; used by the FOMC in formulating monetary policy.
The FOMC's primary means of adjusting the stance of monetary policy is by changing its target for the federal funds rate. To explain how such changes affect the economy, it is first necessary to describe the federal funds rate and explain how it helps determine the cost of short-term credit.
The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve Board that determines the direction of monetary policy. The FOMC is composed of the board of governors, which has seven members, and five Reserve Bank presidents.
Option a) is correct: making decisions regarding monetary policy.
Fiscal policy decisions are determined by the Congress and the Administration; the Fed plays no role in determining fiscal policy.
Monetary Policy. A macroeconomic policy enacted by the central bank that involves the management of money supply and interest rates. This policy is often used to stimulate growth, control inflation and manage exchange rates.
The Federal Reserve conducts the nation's monetary policy by managing the level of short-term interest rates and influencing the availability and cost of credit in the economy. Monetary policy directly affects interest rates; it indirectly affects stock prices, wealth, and currency exchange rates.
Monetary policy is an economic policy that manages the size and growth rate of the money supply in an economy. It is a powerful tool to regulate macroeconomic variables such as inflation and unemployment.
The Federal Open Market Committee (FOMC) consists of twelve members--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 rotating seats are filled from the following four groups of Banks, one Bank president from each group: Boston, Philadelphia, and Richmond; Cleveland and Chicago; Atlanta, St. Louis, and Dallas; and Minneapolis, Kansas City, and San Francisco. Nonvoting Reserve Bank presidents attend the meetings of the Committee, participate in the discussions, and contribute to the Committee's assessment of the economy and policy options.
The Federal Reserve controls the three tools of monetary policy-- open market operations, the discount rate , and reserve requirements . The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee is responsible for open market operations.
The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy.