112
Unit 2 Money and Regulation
Federal Open Market
Committee
All seven members of the BOG are also members
of the Federal Open Market Committee. The Federal
Open Market Committee (FOMC) has 12 members.
It meets eight times a year to make key decisions that
set US monetary policy and allow the Federal Reserve
System to carry out its functions.
The chairperson of the BOG is also the
chairperson of the FOMC. The president of the Federal
Reserve Bank in New York is always a member of
the FOMC. The remaining four members each serve
one-year terms. They are chosen from the presidents
of the other 11 Federal Reserve Banks. Presidents
of the Federal Reserve Banks who are not on the
FOMC still attend the meetings and participate in the
discussions.
Checkpoint 5.2
1. How is the Federal Reserve System set up differently than its
predecessors?
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bank in New York?
3. How are members of the Board of Governors selected?
4. What is the Federal Open Market Committee responsible for?
5. Who are the members of the FOMC?
Build Your Vocabulary
As you progress through this course, develop a personal glossary
of banking terms and add it to your portfolio. This will help you build your
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and add it to your personal glossary.
Federal Reserve System
Fed
monetary system
decentralization
Federal Reserve Bank
Board of Governors (BOG)
Federal Open Market Committee (FOMC)
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I n 200 6, B e n B e rn a n ke was
a p po i nted th e ch a i r of th e B oa rd of
G ove r n o rs of th e Fed e ra l Res e r ve S y ste m .