What is the Federal Open Market Committee (FOMC)?

A 12-member committee consisting of the seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank presidents. The president of the Federal Reserve Bank of New York is a permanent member while the other Federal Reserve presidents serve on a rotating basis. The Committee sets objectives for the growth of money and credit that are implemented through purchases and sales of US government securities in the open market. The FOMC also establishes policy relating to System operations in the foreign exchange markets.