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MadMarketScientist

FOMC Definition

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The composition of the Federal Open Market Committee is as follows: the 7 members of the Federal Reserve Board of Governors, and 5 of the 12 Federal Reserve Bank Presidents. The FOMC is headed by the Chairman of the Federal Reserve Board (Ben Bernanke presently). The FOMC sets interest rates either directly by altering the discount rate (the rate at which the Federal Reserve lends to banks) or through the use of open market operations (by purchasing and selling government securities).

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