Federal Reserve Board

As part of the FOMC, the board works with other bank representatives to develop key policies for the Federal Reserve. The open market operations of the FOMC determine the control of the nation's money supply and the prevailing economic conditions of the country. Twelve voting members form this committee. Seven members are the governors from the board, and five members are presidents of district banks. The board, therefore, has the majority of the votes within the committee. The chair of the board of governors also presides as the chair of the FOMC. When the FOMC meets, approximately eight times a year, the board makes suggestions and policy surrounding the purchase and sale of securities in the open market. Such transactions supply bank reserves to support the credit and money that is needed for long-term economic growth, to offset cyclical economic swings, and to accommodate seasonal demands of businesses and consumers for money and credit.