The Federal Open Market Committee (FOMC), a committee within the Federal Reserve System, is charged under United States law with overseeing the nation's open market operations (i.e., the Fed's buying and selling of United States Treasury securities). It is the Federal Reserve committee that makes key decisions about interest rates and the growth of the United States money supply.
It 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 currently 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.
Read more about Federal Open Market Committee: Membership, Meetings, Decision-making Process, Consensus, Congressional Oversight, Interest Rate Targeting: Criticism and Alternatives, Current Members
Famous quotes containing the words federal, open, market and/or committee:
“Daniel as a lad bought a handkerchief on which the Federal Constitution was printed; it is said that at intervals while working in the meadows around this house, he would retire to the shade of the elms and study the Constitution from his handkerchief.”
—For the State of New Hampshire, U.S. public relief program (1935-1943)
““What care I for a goose-feather bed,
With the sheet turned down so bravely, O?
For to-night I shall sleep in a cold open field,
Along with the wraggle taggle gipsies, O!””
—Unknown. The Wraggle Taggle Gipsies (l. 33–36)
“I respect not his labors, his farm where everything has its price, who would carry the landscape, who would carry his God, to market, if he could get anything for him; who goes to market for his god as it is; on whose farm nothing grows free, whose fields bear no crops, whose meadows no flowers, whose trees no fruit, but dollars; who loves not the beauty of his fruits, whose fruits are not ripe for him till they are turned to dollars. Give me the poverty that enjoys true wealth.”
—Henry David Thoreau (1817–1862)
“It is easy to carp at colleges, and the college, if he will wait for it, will have its own turn. Genius exists there also, but will not answer a call of a committee of the House of Commons. It is rare, precious, eccentric, and darkling.”
—Ralph Waldo Emerson (1803–1882)