Functions, Objectives and Organizations of the Fed (taken from the Richmond Fed)
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The Fed has 3 well-known responsibilities:
Fed's primary monetary policy goals:
Supervision and Regulation:
Services to financial institutions:
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The Federal Open Market Committee (FOMC)
Tools of monetary policies:
Structure of the FOMC:
What happens at the FOMC meetings?
- open market operations
- discount rate
- reserve requirements
Structure of the FOMC:
- 12 members
- 8 scheduled meetings per year
What happens at the FOMC meetings?
- review economic and financial conditions
- determine the appropriate stance of monetary policy
- assesses the risks to its long-run goals of price stability and sustainable economic growth