Institutions
Federal Open Market Committee (4 photos)
Federal Open Market Committee It consists of 12 members, 7 Federations and New York Federal Reserve Bank accounted for 8 seats, and the other 4 seats were taken by the remaining 11 federal reserve banks. Public market committee resolutions and open market operations are the most important departments in the Fed system, and each year will open eight meetings every six.Responsible for functionality
The most important task of the Federal Open Market Committee is to use open market operations (one of the main monetary policies), affect the reserves of currency on the market to a certain extent. In addition, it is also responsible Determine the growth range of total monetary volume (ie, the number of currencies in the market) and guides the federal reserve banks in the foreign exchange market.
The main decisions of the committee need to be banned through the discussion meeting, and they will hold eight routine conferences every year in Washington, DC, and their conference schedule will open to the public each year. Instead, it is mainly due to transactions related to consultation through the telephone conference. Of course, special sessions can also be held if necessary.
status effect
US Federal Open Market Committee US federal reserve system formulate monetary policy in three ways: open market operation, formulating discount rate, and formulates a statutory reserve rate. Open market business operation is the most commonly used in US daily monetary policy, most commonly used in economic and financial operations. The US Federal Open Market Committee actually undertakes important responsibilities in the development of monetary policy, guiding and supervising public market operations.
Personnel composition
The US Federal Open Market Committee consists of 12 members, respectively, the Director of the Federal Reserve System, and the 5 President of 12 Reserve Bank . Among them, the director of the Directors and New York Reserve Banks were 8 people as permanent members, and the remaining four seats were rotated each year. The Chairman of the Federal Reserve Board is the Chairman of the Federal Open Market Committee, and the New York Reserve Bank President is a vice chairman of the Committee. The Federal Reserve Council is the highest management organ of the Fed, and each director is appointed by the president for a term of 14 years. The chairman of the Council, the vice chairman was adopted by the President of the Senate. 4 years, the Director of the Federal Reserve Board is generally composed of experts, scholars and celebrities.
Conference Systems
Meeting agenda
US Federal Open Market Committee held an 8th meeting every year, generally analyzed in February and July, The growth of total currency credit, predicts the change range of the actual national product gross value, inflation, employment rate and other indicators. In other six meetings, you should review the long-term monetary credit targets. The specific agenda of each meeting is as follows:
1, approve the last seerate meeting record;
2, foreign currency operation evaluation, including the operating situation report after the last meeting, approval The trading situation after the end of the meeting;
3, domestic public market operation evaluation, including reports of operating conditions after the last meeting, approving the trading situation after the last meeting;
4. Evaluation of economic situation, including reports on the economic situation, the discussion of the committee;
5, monetary policy long-term goals (February and July meetings), including staff comments, the committee's long-term goals And action plan discussion;
6, current monetary policy and domestic policy directives, including staff reviews, committees discussions and formulation;
7, determine the date of the next meeting.
Conference Materials
The US Federal Open Market Committee prepares documents and issued relevant personnel to participate in the conference before each meeting and the staff of these participant services. Files are divided into green books, blue books and brots.
1, the green paper is mainly to provide a detailed assessment of the main economic sectors and the development trend of the Federal Reserve, and summarizes the economic growth, prices and international sectors. Schedule provides quantitative predictions for some major economic financial variables in current and subsequent years. Typically, predictive considering a more long-term monetary growth interval while also uses some structural metering models. Usually the final result relies on some advanced members' judgment.
2, the Blue Paper is mainly for the board of directors, the latest development and prospects of the money, bank reserves and interest rates. In the blue books of the conference in February, it offers a blueprint for the one-year Iraqi. In July, the Blue Book reviews and looks forward to the situation in the year's currency and preliminarily discusses the following situation. Blue books in February and July also determine the relevant data required for the hearing, such as the growth range of total currency. In addition, the development of monetary finance is also analyzed, so that the committee will re-consider the objectives established at the beginning of the year.
8 This Blue book includes a development overview of the currency and finance during the corresponding meeting. The Committee usually puts three options that include reserves, horizontal and monetary targets for more than 3 months growth rate, discounts for the number of loans and short-term interest rates. And explain the possible impact of various possible financial conditions and their economic activities. In the past, the committee's objectives were developed, but due to the large demand of ML in the 1980s, M1 was no longer targets M1 as monetary policy. In order to contribute to the judgment, the committee staff have established a quarterly and monthly economic measurement model, and the monetary demand is simulated, and special research has been conducted on some factors affecting currency demand. In particular, the agency changes, and inflation rate fluctuations have changed. This is especially true when the previous variable relationship is.
3, the brown book is announced before each meeting is about to begin, mainly providing regional economic status of 12 reserves. The contents of the brown book include conversations with local business giants and analysis of statistical reports in the region. A review report of 11 federal reserve banks is on the beginning.
Meeting records and information published in
The US Federal Open Market Committee ended 2 months after the open market committee meeting, the public market committee was recorded. The meeting records include the main contents and problems of the last meeting and the conclusions, including the list of personnel who participated in the meeting and whether the voters are in favor of some issues.
Member list
(Chair) Janet - Yellen
(Janet L. Yellen), Chairman of the Federal Reserve Committee.
(Vice-Chair) Timothy F. Geithner, New York Federal Reserve Bank President.
(member) Roger Ferguson, the Federal Reserve Committee Chairman.
(member) Edward M. Gramlich, a member of the Federal Reserve Committee.
(Member) Susan Schmidt · Ms. Member of the Federal Reserve Committee.
(Member) Mark W. Olson, a member of the Federal Reserve Committee.
(Member) Ben Ben S. Bernanke, a member of the Federal Reserve Committee.
Donald L. Kohn, a member of the Federal Reserve Committee.
(Member) Thomas M. Hoenig, Kansas City Federal Reserve Bank President.
(Member) Cathy E. Minehan, Boston Federal Reserve Bank President.
(Member) Sandra Pianalto, Cleveland Federal Reserve Bank President.
(member) William Poole, St. Louis Federation Reserve Bank President
Related Issues
FOMC special attention to two issues facing economies: economic growth and inflation. If interest rate is too high, economic growth may slow down; ontso, the interest rate is too low to make economic growth beyond the potential of economies, and form inflation. Therefore, the Monetary policy objective of FOMC is seeking a balance between economic growth and both infinity, and the interest rate target is determined according to this principle.