The (FOMC) Federal Open Market Committee. The U.S. federal reserve was created by the Federal Reserve Act in 1913. The voting members of the FOMC are the members of the Fed's Board of Governors and the presidents of five Federal Reserve Banks, including the Federal Reserve Bank of New York. Federal Open Market Committee. The Federal Open Market Committee (FOMC) is the committee in charge of handling open market operations, which is an important component of monetary policy. The Federal Open Market Committee (FOMC) sets monetary policy in the United States, and the Fed's New York trading desk uses open market operations to achieve that policy's objectives. Federal Open Market Committee Meeting - FOMC Meeting: The meeting of the Federal Open Market Committee (FOMC) that occurs eight times a year. B. includes the Board of Governors and the presidents of the 12 Federal Reserve regional banks (though not all are voting members). The Federal Open Market Committee (FOMC) is the entity that carries the Federal Reserve's OMO policy. The manager of the Open Market Account then translates the FOMC’s directive into operating objectives by working with Federal Reserve staff in New York and at the Board of Governors in Washington, D.C. The Federal Open Market Committee was formed by the Banking Act of 1933 (codified at 12 U.S.C. The Federal Open Market Committee (FOMC) judges that inflation rate of 2 percent over the longer run, as measured by the annual change in the price index for personal consumption expenditures, is most consistent with the Federal Reserve’s mandate. It is a 12-member committee, consisting of all seven members of the Board of Governors, and the Presidents of any five of the regional banks. The Federal Reserve Act of 1977 modified the original act establishing the Federal Reserve in 1913 and clarified the roles of the Board of Governors and Federal Open Market Committee … Monetary policy in the United States comprises the Federal Reserve's actions and communications to promote maximum employment, stable prices, and moderate long-term interest rates--the economic goals the Congress has instructed the Federal Reserve to pursue. The Federal Open Market Committee (FOMC), the group that makes monetary policy for the Federal Reserve System, meets in Washington, D.C., usually eight times a year. The Board of Governors of the Federal Reserve sets a target federal … Open Market Operations vs. Quantitative Easing: An Overview . A. determines the target federal funds rate and the direction of open market operation policies. Following an FOMC meeting, the Committee issues a directive to the open market desk outlining its targeted federal funds rate. § 263), and did not include voting rights for the Federal Reserve Board of Governors.