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Five of the 12 members of the Federal Open Market Committee (FOMC) must be what?
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What is the Federal Open Market Committee (FOMC)?
The branch of the federal Reserve Board that determines the direction of monetary policy. The FOMC is composed of the board of governors, which has seven members, and five reserve bank presidents.
Who sets prime rate?
the Federal Open Market Committee (FOMC),
Difference between repo rate and overnight rate?
Referencing the monetary policy is usually when these two rates are compared. Here's a high level version in plain English. First, definitions. The overnight rate is the interest rate, called the effective Federal Funds rate, that is used when banks lend money to each other in the Federal Funds Market to meet bank reserve requirements. These loans do not have any collateral. The repo rate is the interest rate, called the repurchase agreements rate, (and the opposite - reverse repo rate) used when the FOMC (Federal Open Market Committee) wants to adjust the country's money supply by way of adjusting the level of credit. When FOMC wants to increase credit during a recession, the FOMC will loan funds to specific Treasury Dealers, who in turn, will provide treasuries as collateral. These funds are deposited (credited) to the dealers' banks, which will cause funds to be available for loans to the general public. The dealers will pay the loans within a few days, with interest (repo rate). If, as an example, the economy is showing inflation, then FOMC wants to decrease credit. The opposite occurs. The FOMC becomes the borrower, receiving loans from and issuing treasuries to Treasury Dealers as collateral. Again, the loans are usually paid within a short period of time, and the reverse repo rate is used. Both the repo and reverse repo rates are part of the Repo Market. Now, here's the connection between the two markets, Federal Funds and Repo, in the monetary policy arena. In the news, the public hears about an interest rate change by the Fed (FOMC). This is the "targeted" Federal Funds rate. The FOMC springs into action during business hours, with the Treasury Dealers in the Repo market, adjusting the country's credit, using the targeted Federal Funds rate as a benchmark for the repo (reverse repo) rate. During evening hours, the banks are loaning to each other in the Federal Funds Market, using the repo rate as a benchmark for the effective Federal Funds rate. The effective rate (no collateral) will be slightly higher than the repo rate (has collateral). The next day, the FOMC will review results from the previous day to see how well the effective rate met the targeted rate, and the Repo Rate "dance" starts all over again. That evening, the banks will do a repeat performance of the Federal Funds "dance".
What is the current Prime Rate?
The current prime rate according to the Wall Street Journal and the Bloomberg Business Weekly is currently between twenty-two and twenty-five percent.
How often does the Wall Street Journal Prime Rate change?
The Wall Street Journal Prime Rate changes pretty often. Usually once of twice a month. Traditionally the FOMC would meet and change the rate when 23 of the 30 banks rates would change.
Who are the members of the Federal open market committee?
The FOMC is the abbreviation of the Federal Open Market Committee within the US Federal Reserve System. The membership of the FOMC is comprised of presidents of the several Federal Reserve Banks in the US and members of the Federal Reserve Board of Governors. By law the FOMC is responsible for deciding what open market transactions the Federal Reserve System will undertake.
Who are the members of the Federal Reserve Open Market Committee?
The FOMC is the abbreviation of the Federal Open Market Committee within the US Federal Reserve System. The membership of the FOMC is comprised of presidents of the several Federal Reserve Banks in the US and members of the Federal Reserve Board of Governors. By law the FOMC is responsible for deciding what open market transactions the Federal Reserve System will undertake.
What are the main components in the Federal Reserve banks?
The Federal Open Market Committee. The Federal Open Market Committee (FOMC) consists of seven Federal Reserve Board members and five Federal Reserve bank representatives. The FOMC sets monetary policy by.
What is the Federal Open Market Committee (FOMC)?
The branch of the federal Reserve Board that determines the direction of monetary policy. The FOMC is composed of the board of governors, which has seven members, and five reserve bank presidents.
Who sets prime rate?
the Federal Open Market Committee (FOMC),
What is the FOMC?
The monetary policy-making body within the Federal Reserve is the Federal Open Market Committee (FOMC). Its voting members are the seven governors of the board of governors and five presidents of the regional banks. The FOMC meets eight times per year.
What is the major policy making group within the fed?
FOMC (Federal Open Market Committee)
Which part of the federal reserve writes the policies that make your system safe and strong?
THE FOMC- Federal Open Market Committee
What is the Federal Reserve System in charge of what policy?
monetary policy
What committee advises the fed on the growth of the money suppy and interest rates?
FOMC Federal Open Market Commitee
Who sits on the FOMC?
The representatives who sit on the Federal Open Market Committee are:seven members of the Federal Reserve Boardfive of the twelve Federal Reserve Bank presidentsthe remaining seven Federal Reserve Bank presidents serve one year terms on a rotating basisAll Reserve Bank presidents who are not currently voting members of the committee, sit in on meetings and contribute to discussions.See the link below for the minutes of the January 2012 FOMC meeting, which lists the attendees of that meeting.
Federal open market committee?
Must give us some more info.... although the fomc is a committee within the Federal Reserve System and is charged under United States law with overseeing the nation's open market operations
