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Federal Reserve Open Market Committee: Find article & analyze.

- Federal Reserve Open Market Committee

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Federal Reserve Open Market Committee:

This is a policy committee that is established in the Federal Reserve systems geared towards the creation of short-term policy objectives of a monetary nature. The members of the committee are the seven governors of the board of Federal Reserve together with the twelve presidents of the Federal Banks. The permanent position of the president of the committee has been held by the Federal Reserve Bank of New York. The main function of the committee is the creation of monetary objectives that will issue directives to the open market desk at the Federal Reserve Bank (Sahadi, 2012).

The agenda is to ensure that the selling and the buying of the government securities from the special open market account takes place. As the sole purpose of the Federal Reserve Open Market Committee is to determine the direction of the monetary policies, the setting of the key interest rates is undertaken. It also controls the open market operations and the reserve requirements. A chain or reaction occurs in the presence of an alteration in the federal funds rates this in turn affects the short term interest rates in the business operations (Federal Open, 2012).

In the operations of the meeting which takes place eight times annually, the entire ...

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Federal reserve open market committee is analyzed in the solution. An article is found and analyzed.