The Federal Open Market Committee
The Federal Open Market Committee (FOMC) is the most important monetary policymaking body of the Federal Reserve System. It is responsible for the formulation of a policy designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.
The FOMC makes key decisions regarding the conduct of open market operations — purchases and sales of U.S. Government and Federal Agency securities — which affect the provision of reserves to depository institutions and, in turn, the cost and availability of money and credit in the U.S. economy. The FOMC also directs System operations in foreign currencies.
Membership of the Committee
The FOMC is composed of the seven members of the Board of Governors and five Reserve Bank presidents. The President of the Federal Reserve Bank of New York serves on a continuous basis; the presidents of the other Reserve Banks serve on a rotating basis for one-year terms beginning on January 1 of each year. Rotation is conducted so that each year one member is elected to the Committee by the Boards of Directors of each of the following groups of Reserve Banks:
- Boston, Philadelphia, and Richmond;
- Cleveland and Chicago;
- Atlanta, St. Louis, and Dallas; and
- Minneapolis, Kansas City, and San Francisco.
Current Members of the FOMC (Board of Governors)
The FOMC holds eight regularly scheduled meetings per year. At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth.