ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The FOMC is responsible for setting monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates. The FOMC Meeting schedule meets eight times per year to discuss economic conditions and make decisions on monetary policy.

Detailed explanation-2: -The FOMC is the body of the Federal Reserve System that sets national monetary policy (figure 2.4). The FOMC makes all decisions regarding the appropriate position or “stance” of monetary policy to help move the economy toward the congressionally mandated goals of maximum em-ployment and price stability.

Detailed explanation-3: -The Fed’s economic goals prescribed by Congress are to promote maximum employment, stable prices, and moderate long-term interest rates. The Federal Open Market Committee (FOMC or Committee) is responsible for monetary policy decisions to achieve these goals.

Detailed explanation-4: -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-5: -The FOMC holds eight regularly scheduled meetings during the year and other meetings as needed. Links to policy statements and minutes are in the calendars below. The minutes of regularly scheduled meetings are released three weeks after the date of the policy decision.