b> Federal Open Market Committee (FOMC), a component of the Federal Reserve System, is charged under United States law with overseeing the nation's open market operations. It is the Federal Reserve committee that makes key decisions about interest rates and the growth of the United States money supply. It is the principal organ of United States national monetary policy. (Open market operations are the buying and selling of United States Treasury securities.) The Committee sets monetary policy by specifying the short-term objective for those operations, which is currently a target level for the federal funds rate (the rate that commercial banks charge between themselves for overnight loans). The FOMC also directs operations undertaken by the Federal Reserve System in foreign exchange markets, although any intervention in foreign exchange markets is coordinated with the US Treasury, which has responsibility for formulating US policies regarding the exchange value of the dollar.the Fed makes its first steps in the economic practice of the United States, nobody seriously considered the open market operations as a sort of instrument control and economic relations. At this time the Fed to purchase securities of the federal government primarily in order to get enough of a profitable asset, if the profits from giving the federal reserve banks loans and advances is, for whatever reasons, inadequate. Most of the Federal Reserve Banks felt that the most convenient venue for such transactions is a New York City, and it is here in the twenties informal committee composed of representatives from all twelve Federal Reserve Bank, begun to coordinate their actions on securities the federal government . While almost immediately after its inception, this body began to affect the state of the economic system, compensating through appropriate purchase and sale of securities circulation of yellow metal in the economy and create additional reserves for the system of private banks, legislative activity, the Federal Open Market Committee (FKOR) has been executed and legalized only after the adoption of the Banking Act 1935.Open Market Committee directs open market operations in securities. At their meetings the members FKOR considering current economic conditions and determine the most appropriate in their view of monetary policy and the direction of its development. After this, the Federal Open Market Committee is preparing a directive order to manage ongoing operations in the open market, which is also the vice-president of the Federal Central Bank of New York. This order does not specify its further actions on the open market itself decides where, how and how much to buy or sell securities of the federal government. Legislative available only outlines the proposed direction of monetary policy and sets the values ​​and levels of key parameters of the banking system, such as the level of free reserves, the sale rate the Fed...
