Federal Open Market Committee (FOMC)

The Federal Open Market Committee (FOMC) is the System’s main body for carrying out an important role in the U.S. economy: the formulation and conduct of monetary policy.

The committee is composed of twelve members, including the seven members of the Board of Governors and five of the Reserve Bank presidents.

The New York Reserve Bank’s president serves continuously and is the FOMC’s vice chairman. The other Reserve Bank presidents serve four at a time in one-year rotating terms. The Cleveland Reserve Bank’s president serves in alternate years with the president of the Chicago Bank. All twelve Reserve Bank presidents attend FOMC meetings, and all actively participate in policy discussions.

The Congress included Reserve Bank presidents on the FOMC to ensure regional participation in monetary policy. In fact, the Cleveland Reserve Bank’s foremost role in the monetary policy process is our president’s participation in the deliberations and actions of the FOMC. Our board of directors also plays an important monetary policy role through its advice to the president and recommendations on the Bank’s discount rate.