Asked by Julie Smith on May 26, 2024
Verified
Why is the president of the New York Fed always a voting member of the FOMC?
President
The elected head of a republican state or the executive leader of an organization, company, club, or other governing body.
New York Fed
A key component of the Federal Reserve System, responsible for regulating and implementing monetary policy in the Federal Reserve District of New York.
FOMC
The Federal Open Market Committee, which is responsible for setting monetary policy in the United States, including interest rates and money supply targets.
- Explain the role, composition, and operational dynamics of the Federal Reserve Open Market Committee (FOMC).
Verified Answer
EC
Emman CerialesMay 26, 2024
Final Answer :
New York is the financial capitol of the United States. All Fed purchases and sales of government securities are conducted through the New York Fed's trading desk. Because of the important role of the New York Fed in implementing open market operations, the NY Fed president always votes on open market policies.
Learning Objectives
- Explain the role, composition, and operational dynamics of the Federal Reserve Open Market Committee (FOMC).