§ 263. — Federal Open Market Committee; creation; membership; regulations governing openmarket transactions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC263]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER IV--FEDERAL OPEN MARKET COMMITTEE
Sec. 263. Federal Open Market Committee; creation; membership;
regulations governing open-market transactions
(a) There is hereby created a Federal Open Market Committee
(hereinafter referred to as the ``Committee''), which shall consist of
the members of the Board of Governors of the Federal Reserve System and
five representatives of the Federal Reserve banks to be selected as
hereinafter provided. Such representatives shall be presidents or first
vice presidents of Federal Reserve banks and, beginning with the
election for the term commencing March 1, 1943, shall be elected
annually as follows: One by the board of directors of the Federal
Reserve Bank of New York, one by the boards of directors of the Federal
Reserve Banks of Boston, Philadelphia, and Richmond, one by the boards
of directors of the Federal Reserve Banks of Cleveland and Chicago, one
by the boards of directors of the Federal Reserve Banks of Atlanta,
Dallas, and St. Louis, and one by the boards of directors of the Federal
Reserve Banks of Minneapolis, Kansas City, and San Francisco. In such
elections each board of directors shall have one vote; and the details
of such elections may be governed by regulations prescribed by the
committee, which may be amended from time to time. An alternate to serve
in the absence of each such representative shall likewise be a president
or first vice president of a Federal Reserve bank and shall be elected
annually in the same manner. The meetings of said Committee shall be
held at Washington, District of Columbia, at least four times each year
upon the call of the chairman of the Board of Governors of the Federal
Reserve System or at the request of any three members of the Committee.
(b) No Federal Reserve bank shall engage or decline to engage in
open-market operations under sections 348a and 353 to 359 of this title
except in accordance with the direction of and regulations adopted by
the Committee. The Committee shall consider, adopt, and transmit to the
several Federal Reserve banks, regulations relating to the open-market
transactions of such banks.
(c) The time, character, and volume of all purchases and sales of
paper described in sections 348a and 353 to 359 of this title as
eligible for open-market operations shall be governed with a view to
accommodating commerce and business and with regard to their bearing
upon the general credit situation of the country.
(Dec. 23, 1913, ch. 6, Sec. 12A, as added June 16, 1933, ch. 89, Sec. 8,
48 Stat. 168; amended Aug. 23, 1935, ch. 614, title II, Sec. 205, 49
Stat. 705; July 7, 1942, ch. 488, Sec. 1, 56 Stat. 647.)
Amendments
1942--Subsec. (a). Act July 7, 1942, substituted second, third, and
fourth sentences for former second and third sentences.
1935--Act Aug. 23, 1935, amended provisions relating to membership
in subsec. (a), substituted ``Committee'' for ``Federal Reserve Board''
and ``Board'' in subsec. (b), and omitted subsec. (d).
Section Referred to in Other Sections
This section is referred to in section 355 of this title.
