Creation,
Members, and Meetings (a) There is
hereby created a Federal Open Market Committee (hereinafter referred
to as the “Committee”), which shall consist of the members of the
Board of Governors of the Federal Reserve System and five representatives
of the Federal Reserve banks to be selected as hereinafter provided.
Such representatives shall be presidents or first vice presidents
of Federal Reserve banks and, beginning with the election for the
term commencing March 1, 1943, shall be elected annually as follows:
One by the board of directors of the Federal Reserve Bank of New York,
one by the boards of directors of the Federal Reserve Banks of Boston,
Philadelphia, and Richmond, one by the boards of directors of the
Federal Reserve Banks of Cleveland and Chicago, one by the boards
of directors of the Federal Reserve Banks of Atlanta, Dallas, and
St. Louis, and one by the boards of directors of the Federal Reserve
Banks of Minneapolis, Kansas City, and San Francisco. In such elections
each board of directors shall have one vote; and the details of such
elections may be governed by regulations prescribed by the committee,
which may be amended from time to time. An alternate to serve in the
absence of each such representative shall likewise be a president
or first vice president of a Federal Reserve bank and shall be elected
annually in the same manner. The meetings of said committee shall
be held at Washington, District of Columbia, at least four times each
year upon the call of the chairman of the Board of Governors of the
Federal Reserve System or at the request of any three members of the
Committee.
[12 USC 263(a). As added by act of June 16, 1933 (48 Stat. 168);
completely revised by act of Aug. 23, 1935 (49 Stat. 705); and further
amended by act of July 7, 1942 (56 Stat. 647).]
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Participation of Reserve Banks; Regulations
of Committee (b) No Federal Reserve
bank shall engage or decline to engage in open-market operations under
section 14 of this Act except in accordance with the direction of
and regulations adopted by the Committee. The Committee shall consider,
adopt, and transmit to the several Federal Reserve banks, regulations
relating to the open-market transactions of such banks.
[12 USC 263(b). As
added by act of June 16, 1933 (48 Stat. 168); and amended by act of
Aug. 23, 1935 (49 Stat. 706).]
1-110
Governing Principles (c) The time,
character, and volume of all purchases and sales of paper described
in section 14 of this Act as eligible for open-market operations shall
be governed with a view to accommodating commerce and business and
with regard to their bearing upon the general credit situation of
the country.
[12 USC 263(c). As added by act of June 16, 1933 (48 Stat. 168);
and reenacted without change by act of Aug. 23, 1935 (49 Stat. 706).]
