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Disclaimer: The content is not a piece of investment advice and does not offer or recommend any stocks. It is for the understanding of how Federal Reserve bank operates. I just explain the mechanism of the Federal Reserve System. What policy tools can be used to executive the Federal Reserve’s decision?
Federal Open Market Committee (FOMC)
- the monetary policymaking body of the Federal Reserve System
- composed of 12 members (7 members of the board of governors, and 4 of the 11 reserve bank presidents, New York reserve bank presidents)
- The president of the Federal Reserve Bank of New York is a permanent member of the Committee and serves as the vice-chairman of the committee.
- The board chair serves as the chair of the FOMC
- The presidents of the other reserve banks fill the remaining 4…
