The procedures followed by the Committee
are designed to facilitate the effective performance of the Committee’s
statutory functions with respect to the regulation and direction of
open market operations conducted by the Federal Reserve Banks and
with respect to certain direct transactions between the Federal Reserve
Banks and the United States. In determining the policies to be followed
in such operations, the Committee considers information regarding
business and credit conditions and domestic and international economic
and financial developments, and other pertinent information gathered
and submitted by its staff and the staffs of the Board of Governors
of the Federal Reserve System (the “Board”) and the Federal Reserve
Banks. Against the background of such information, the Committee takes
actions from time to time to regulate and direct the open market operations
of the Federal Reserve Banks. Such policy actions ordinarily are taken
through the adoption and transmission to the Federal Reserve Banks
of regulations, authorizations, and directives.
