Open Market Operations – Fed's Key Tool in Monetary Policy

Federal Open Market Committee consisting of the president of Federal Reserve Bank of New York

, seven members of the Board of Governors and four rotating members from the other eleven Reserve Banks is the decision making body with relation to Open Market Operations. It specifies a certain quantity of reserves to be purchased or sold and also states any change in the federal funds rate.

Open Market Operations Fed's Key Tool in Monetary Policy

By: kelly price

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