ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -The Federal Open Market Committee sets U.S. monetary policy in accordance with its mandate from Congress: to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy.

Detailed explanation-3: -The Federal Open Market Committee (FOMC or Committee) is responsible for monetary policy decisions to achieve these goals. The goals of maximum employment and price stability, commonly known as the “dual mandate”, create the conditions for moderate long-term interest rates.

Detailed explanation-4: -The Federal Open Market Committee (FOMC) conducts monetary policy by adjusting the target range for the federal funds rate. The Fed implements monetary policy by using its monetary policy tools to ensure that market interest rates are at levels consistent with the FOMC’s target.

Detailed explanation-5: -The chair is Jerome Powell, who was sworn in for a second four-year term on May 23, 2022. The vice-chair of the FOMC is John Williams. Other Federal Reserve Board members include Michelle Bowman, Michael Barr, Lisa Cook, Philip Jefferson, and Christopher Waller.