question archive The Federal Open Market Committee (FOMC) is compromised of the 7 members of the Board of Governors of the Federal Reserve, who can vote to change monetary policy, and the 12 Reserve bank presidents, who can advise the Governors, but can't vote on proposed changes to monetary policy
The Federal Open Market Committee (FOMC) is compromised of the 7 members of the Board of Governors of the Federal Reserve, who can vote to change monetary policy, and the 12 Reserve bank presidents, who can advise the Governors, but can't vote on proposed changes to monetary policy
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The Federal Open Market Committee (FOMC) is compromised of the 7 members of the Board of Governors of the Federal Reserve, who can vote to change monetary policy, and the 12 Reserve bank presidents, who can advise the Governors, but can't vote on proposed changes to monetary policy. True or false?
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The above statement is false.
This is because the Federal Open Market Committee comprises 12 members in total. The first seven members are the governors of the Federal Reserve, one governor of the New York Bank, and four governors of the other eleven reserve banks who rotate among themselves, each serving for one year in the committee. All the members, including the seven governors of the Federal Reserve and five governors of the other Reserve banks, have the right to vote during monetary policy creation. Thus, the above statement is false because all the 12 members vote, not the Federal Reserve's governors.
