ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -The chair is Jerome Powell, who was sworn in for a second four-year term on May 23, 2022.

Detailed explanation-3: -The FOMC is composed of 12 members–the seven members of the Board of Governors and five of the 12 Reserve Bank presidents. The Board chair serves as the Chair of the FOMC; the president of the Federal Reserve Bank of New York is a permanent member of the Committee and serves as the Vice Chairman of the Committee.

Detailed explanation-4: -The Board of Governors–located in Washington, D.C.–is the governing body of the Federal Reserve System. It is run by seven members, or “governors, ” who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate.

Detailed explanation-5: -Congress enacted legislation that created the FOMC as part of the Federal Reserve System in 1933 and 1935.In the early years of the Fed before the creation of the FOMC, the twelve Federal Reserve Banks undertook open market operations both separately and in coordination with one another.