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: -FOMC is the Fed’s primary monetary policy making body because it has the power to raise or lower interest rates. 12 voting members: 7 member Board of Governors, the president of the new york district Fed, 4 district Federal Reserve Bank presidents from the other 11 districts who serve one year rotation terms.

Detailed explanation-3: -The Federal Open Market Committee (FOMC) is a committee within the Federal Reserve System (the Fed) that 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).

Detailed explanation-4: -What is the Federal Open Market Committee? It is the branch of the Federal Reserve Board that determines the direction of monetary policy.

Detailed explanation-5: -Originally created by the Banking Acts of 1933 and 1935, the Federal Open Market Committee continues to set monetary policy for the United States. The FOMC is the body of the Federal Reserve System that sets national monetary policy.