Company

Companies of New York

The Federal Open Market Committee (FOMC)
Subscribe to the company
The Federal Open Market Committee (FOMC)

The Federal Open Market Committee (FOMC)

Politics and Administration

Connections 2

Subscribe To favorites

Description

The Federal Open Market Committee (FOMC), a committee within the Federal Reserve System (the Fed), is charged under United States law with overseeing the nation's open market operations (e.g., the Fed's buying and selling of United States Treasury securities). This Federal Reserve committee makes key decisions about interest rates and the growth of the United States money supply. Under the terms of the original Federal Reserve Act, each of the Federal Reserve banks was authorized to buy and sell in the open market bonds and short term obligations of the United States Government, bank acceptances, cable transfers, and bills of exchange. Hence, the reserve banks were at times bidding against each other in the open market. In 1922, an informal committee was established to execute purchases and sales. The Banking Act of 1933 formed an official FOMC.

The FOMC is the principal organ of United States national monetary policy. The Committee sets monetary policy by specifying the short-term objective for the Fed's open market operations, which is usually a target level for the federal funds rate (the rate that commercial banks charge between themselves for overnight loans).

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, which has responsibility for formulating U.S. policies regarding the exchange value of the dollar.

Website

https://www.federalreserve.gov/monetarypolicy/fomc.htm

Rating GlobalNY.biz

Mentions in the news View all

Head organization

  • Federal Reserve Board (Fed)

    Federal Reserve Board (Fed)

    The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public inte

Quotes

All

Savannah Guthrie Returns to ‘Today’ After Four-Day Absence

MELVIN Craig
MELVIN Craig

So glad that Savannah’s back in Studio 1A

Teen Wolf Star Dylan Sprayberry Reveals Scientology Journey After Substance Abuse Battle

SPRAYBERRY Dylan
SPRAYBERRY Dylan

I am a Scientologist. I’ve been a Scientologist for three years now. It’s been an epic experience for me

Conor McGregor Speaks Out After 69-Second UFC 329 Loss to Max Holloway

MCGREGOR Conor
MCGREGOR Conor

I will overcome this. I will not be deterred

Jimmy Kimmel Replacement Tiffany Haddish Vows to Keep Making Trump ‘Mad’ With One Move

HADDISH Tiffany
HADDISH Tiffany

I had the best time this week. I made some new friends. I told some jokes that pissed off the White House. And now I can go back to making the president mad just by being a successful Black woman

Montel Williams Makes Rare Comment About Ex-Girlfriend Kamala Harris

WILLIAMS Montel
WILLIAMS Montel

I’m one of those guys that I don’t kiss and tell