subject: Open Market Operations – Fed's Key Tool in Monetary Policy [print this page] 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
