The Federal Open Market Committee directs open market operations, the most important tool of monetary policy. The committee meets in Washington, D.C., eight times a year and holds additional meetings or telephone consultations as needed.

The FOMC comprises 12 members—the seven members of the Board of Governors and five Reserve Bank presidents, one of whom is the president of the Federal Reserve Bank of New York. Other presidents serve one-year terms on a rotating basis, and all presidents participate in each meeting.