Federal Open Market Committee Rules and Authorizations - Federal Reserve System
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Federal Reserve System Federal Open Market Committee Rules and Authorizations
January 2021
Table of Contents FOMC Rules, Statements, and Resolutions ..................................................................................4 Statement on Longer-Run Goals and Monetary Policy Strategy.......................................................4 FOMC Rules of Organization ...........................................................................................................5 FOMC Rules of Procedure ................................................................................................................7 Open Market Operations of Federal Reserve Banks .......................................................................10 Procedures for Allocation of Securities in the System Open Market Account................................12 Resolution Authorizing Certain Actions by Federal Reserve Banks During an Emergency...........13 Guidelines for the Conduct of System Open Market Operations in Federal-Agency Issues...........14 Temporary Authority to Operate System Account..........................................................................15 FOMC Rules Regarding Availability of Information......................................................................16 FOMC Policy on External Communications of Committee Participants ........................................25 FOMC Policy on External Communications of Federal Reserve System Staff ..............................27 FOMC Statements of Policy............................................................................................................31 Program for Security of FOMC Information...................................................................................33 Authorizations for Domestic and Foreign Operations ...............................................................50 Authorization for Domestic Open Market Operations ....................................................................50 Authorization for Foreign Currency Operations .............................................................................52 Foreign Currency Directive.............................................................................................................56
Statement on Longer-Run Goals and Monetary Policy Strategy
Adopted effective January 24, 2012; as reaffirmed effective January 26, 2021
The Federal Open Market Committee (FOMC) Committee has the ability to specify a longer-run
is firmly committed to fulfilling its statutory goal for inflation. The Committee reaffirms its
mandate from the Congress of promoting maxi- judgment that inflation at the rate of 2 percent, as
mum employment, stable prices, and moderate measured by the annual change in the price index
long-term interest rates. The Committee seeks to for personal consumption expenditures, is most
explain its monetary policy decisions to the pub- consistent over the longer run with the Federal
lic as clearly as possible. Such clarity facilitates Reserve’s statutory mandate. The Committee
well-informed decisionmaking by households judges that longer-term inflation expectations
and businesses, reduces economic and financial that are well anchored at 2 percent foster price
uncertainty, increases the effectiveness of mone- stability and moderate long-term interest rates
tary policy, and enhances transparency and ac- and enhance the Committee’s ability to promote
countability, which are essential in a democratic maximum employment in the face of significant
society. economic disturbances. In order to anchor
longer-term inflation expectations at this level,
Employment, inflation, and long-term interest the Committee seeks to achieve inflation that av-
rates fluctuate over time in response to economic erages 2 percent over time, and therefore judges
and financial disturbances. Monetary policy that, following periods when inflation has been
plays an important role in stabilizing the econ- running persistently below 2 percent, appropriate
omy in response to these disturbances. The monetary policy will likely aim to achieve infla-
Committee’s primary means of adjusting the tion moderately above 2 percent for some time.
stance of monetary policy is through changes in
the target range for the federal funds rate. The Monetary policy actions tend to influence eco-
Committee judges that the level of the federal nomic activity, employment, and prices with a
funds rate consistent with maximum employ- lag. In setting monetary policy, the Committee
ment and price stability over the longer run has seeks over time to mitigate shortfalls of employ-
declined relative to its historical average. There- ment from the Committee’s assessment of its
fore, the federal funds rate is likely to be con- maximum level and deviations of inflation from
strained by its effective lower bound more fre- its longer-run goal. Moreover, sustainably
quently than in the past. Owing in part to the achieving maximum employment and price sta-
proximity of interest rates to the effective lower bility depends on a stable financial system.
bound, the Committee judges that downward Therefore, the Committee’s policy decisions re-
risks to employment and inflation have in- flect its longer-run goals, its medium-term out-
creased. The Committee is prepared to use its look, and its assessments of the balance of risks,
full range of tools to achieve its maximum em- including risks to the financial system that could
ployment and price stability goals. impede the attainment of the Committee’s goals.
The maximum level of employment is a broad- The Committee’s employment and inflation
based and inclusive goal that is not directly meas- objectives are generally complementary. How-
urable and changes over time owing largely to ever, under circumstances in which the Commit-
nonmonetary factors that affect the structure and tee judges that the objectives are not complemen-
dynamics of the labor market. Consequently, it tary, it takes into account the employment short-
would not be appropriate to specify a fixed goal falls and inflation deviations and the potentially
for employment; rather, the Committee’s policy different time horizons over which employment
decisions must be informed by assessments of and inflation are projected to return to levels
the shortfalls of employment from its maximum judged consistent with its mandate.
level, recognizing that such assessments are nec-
essarily uncertain and subject to revision. The The Committee intends to review these princi-
Committee considers a wide range of indicators ples and to make adjustments as appropriate at its
in making these assessments. annual organizational meeting each January, and
to undertake roughly every 5 years a thorough
The inflation rate over the longer run is primar- public review of its monetary policy strategy,
ily determined by monetary policy, and hence the tools, and communication practices.
4Federal Open Market Committee—Rules of Organization
As amended effective September 20, 2016
SECTION 1—Authority (c) Oath of office. Each member of the Com-
mittee and each alternate take the same oath of
The rules i are issued by the Federal Open Mar- office as that prescribed by statute to be taken
ket Committee (the “Committee”) pursuant to by officers of the United States.
the requirement of section 552 of title 5 of the
United States Code ii that every agency shall SECTION 3—Chair and Vice Chair
publish in the Federal Register a description of
its central and field organization. At its first regularly scheduled meeting on or
after January 1 of each year, the Committee
elects a Chair and a Vice Chair from among its
SECTION 2—Composition of Committee
membership. The Chair presides at all meet-
ings of the Committee and performs such other
(a) Members. The Committee consists of the duties as the Committee may require. The Vice
seven members of the Board of Governors of Chair performs the duties of the Chair in the
the Federal Reserve System (the “Board”) and absence of the Chair. In the absence of both the
five representatives of the Federal Reserve Chair and the Vice Chair of the Committee, the
Banks, each of whom is a president or a first Vice Chair of the Board acts as Chair of the
vice president of a Federal Reserve Bank. Committee; and, in the absence of the Chair
(b) Federal Reserve Bank representatives. and the Vice Chair of the Committee and the
The representatives of the Federal Reserve Vice Chair of the Board, the member of the
Banks, and an alternate for each representative, Board present with the longest service as a
are elected by the boards of directors of the member of the Board acts as Chair of the Com-
Federal Reserve Banks in accordance with sec- mittee.
tion 12A of the Federal Reserve Act (12 USC
263) for annual terms commencing on the date
of the first regularly scheduled meeting of the SECTION 4—Foreign Currency Subcom-
Committee occurring on or after January 1 of mittee
each year. Prior to the first regularly scheduled
meeting of the Committee on or after January The Foreign Currency Subcommittee (the
1 of each year, each member of the Committee “Subcommittee”) consists of the Chair and
representing the Federal Reserve Banks shall Vice Chair of the Committee and the Vice
cause a record of the member’s election and of Chair of the Board of Governors (or another
the election of the member’s alternate to be for- Board member designated by the Chair as an
warded to the secretary of the Committee. If alternate if a member of the Board serving on
any question is raised as to the election or eli- the Subcommittee is unavailable, and the alter-
gibility of a member or alternate, the Commit- nate of the Vice Chair of the Committee if the
tee determines such question before such mem- Vice Chair of the Committee is unavailable).
ber or alternate participates in a meeting of the
Committee. In the event a member is absent SECTION 5—Staff
from a meeting of the Committee, the mem-
ber’s alternate, in attending the meeting, shall (a) Selection of staff officers. At its first reg-
have the same status as the member for whom ularly scheduled meeting on or after January 1
the alternate is serving. If a member or alter- of each year, the Committee selects, from
nate ceases to be a president or first vice presi- among the officers and employees of the Board
dent of a Federal Reserve Bank, a successor and the Federal Reserve Banks, the following
may be chosen in a special election by the staff officers to serve until the first regularly
boards of directors of the appropriate Federal scheduled meeting on or after January 1 of the
Reserve Bank or Banks and such successor next following year: secretary, deputy secre-
serves until the next annual election.
5§5 Federal Open Market Committee—Rules of Organization
tary, and one or more assistant secretaries; gen- such legal advice as the Committee may re-
eral counsel, deputy general counsel, and one quire. In the absence of the general counsel,
or more assistant general counsels; economists, the deputy general counsel or an assistant gen-
one or more of whom may be designated as eral counsel acts as general counsel pro tem.
senior or associate economists or given titles (e) Filling of vacancies. At any meeting the
reflecting their areas of particular specializa- Committee may fill any vacancy in the offices
tion; and such other officers as the Committee described in this section.
might wish from time to time. A staff officer (f) Other staff assistance. The services of
ceases to be an officer of the Committee if he any officers and employees of the Board and
or she ceases to be employed by the Board or the Federal Reserve Banks are made available
by a Federal Reserve Bank or if the Committee and are utilized by the Committee as required.
selects a successor to that staff officer.
(b) Secretary and deputy and assistant secre- SECTION 6—Manager and Deputy Man-
taries. The secretary keeps minutes of actions ager
and records of discussions at all meetings of the
Committee; maintains a complete record of the The Committee selects a manager and deputy
actions taken by the Committee upon all ques- manager of the System Open Market Account.
tions of policy relating to open market opera- The foregoing shall be satisfactory to the Fed-
tions; and records the votes taken in connection eral Reserve Bank selected by the Committee
with the determination of open market policies to execute open market transactions for such
and the reasons underlying each such action. account (the “Selected Bank”) and shall serve
The secretary has custody of such minutes and at the pleasure of the Committee. The manager
records, and performs such other duties as the keeps the Committee informed on market con-
Committee may require. In the absence of the ditions and on transactions made for such ac-
secretary of the Committee, the deputy secre- count and renders such reports as the Commit-
tary or an assistant secretary acts as secretary tee may specify. In the absence of the manager,
pro tem. the deputy manager acts as manager pro tem.
(c) Economists. The economists prepare for In the event that the president of the Selected
the use of the Committee and present to it such Bank determines that the manager or deputy
information regarding business and credit con- manager is not able to perform the duties of the
ditions and domestic and international eco- position, the Chair may select a person satisfac-
nomic and financial developments as will assist tory to such president to serve as manager or
the Committee in the determination of open deputy manager (as relevant) until the Commit-
market policies, and they perform such other tee and the Selected Bank select a replacement
duties as the Committee may require. manager or (as relevant) deputy manager in ac-
(d) General counsel and deputy and assistant cordance with this section.
general counsel. The general counsel furnishes
i These are uncodified rules, for use within the ii See 5 USC 552(a)(1) at 8-311.
Federal Reserve System.
6Federal Open Market Committee—Rules of Procedure
12 CFR 272; as amended effective September 20, 2016
SECTION 272.1—Authority writing, by telephone, or electronic means. Re-
quests of any three members for the calling of
This part i is issued by the Federal Open Market a meeting shall state the time therefore and
Committee (the “Committee”) pursuant to the shall be filed in writing, by telephone, or elec-
requirement of section 552 of title 5 of the tronic means with the secretary who shall forth-
United States Code that every agency shall with notify all members of the Committee in
publish in the Federal Register its rules of pro- writing, by telephone, or electronic means.
cedure. When the secretary has sent notices to all mem-
bers of the Committee that a meeting has been
requested by three members and of the time
SECTION 272.2—Functions of the Com- therefore, a meeting is deemed to have been
mittee called. If, in the judgment of the Chairman, cir-
cumstances require that a meeting be called at
The procedures followed by the Committee are such short notice that one or more members
designed to facilitate the effective performance cannot be present in person, such members
of the Committee’s statutory functions with re- may participate in the meeting by telephone
spect to the regulation and direction of open conference arrangements or by electronic
market operations conducted by the Federal means.
Reserve Banks and with respect to certain di- (b) Alternates. Whenever any member of the
rect transactions between the Federal Reserve Committee representing Federal Reserve
Banks and the United States. In determining Banks shall find that the member will be unable
the policies to be followed in such operations, to attend a meeting of the Committee, the mem-
the Committee considers information regard- ber shall promptly notify the member’s alter-
ing business and credit conditions and domes- nate and the secretary of the Committee in writ-
tic and international economic and financial ing, by telephone, or electronic means, and
developments, and other pertinent information upon receipt of such notice such alternate shall
gathered and submitted by its staff and the advise the secretary whether the alternate will
staffs of the Board of Governors of the Federal attend such meeting.
Reserve System (the “Board”) and the Federal (c) Quorum. Seven members, at least one of
Reserve Banks. Against the background of whom represents a Federal Reserve Bank, con-
such information, the Committee takes actions stitute a quorum of the Committee for purposes
from time to time to regulate and direct the of transacting business except that, if there are
open market operations of the Federal Reserve fewer than seven members in office, then the
Banks. Such policy actions ordinarily are taken number of members in office constitute a
through the adoption and transmission to the quorum. For purposes of this paragraph (c),
Federal Reserve Banks of regulations, authori- members of the Committee include alternates
zations, and directives. acting in the absence of members. Less than a
quorum may adjourn a meeting of the Commit-
SECTION 272.3—Meetings tee from time to time until a quorum is in at-
tendance.
(a) Place and frequency. The Committee (d) Attendance at meetings. Attendance at
meets in Washington, D.C., at least four times Committee meetings is restricted to members
each year and oftener if deemed necessary. and alternate members of the Committee, the
Meetings are held upon the call of the Chair- presidents of Federal Reserve Banks who are
man of the Board or at the request of any three not at the time members or alternates, staff of-
members of the Committee. Notices of calls by ficers of the Committee, the manager, and such
the Chairman of the Board to other members other advisers as the Committee may invite
are given by the secretary of the Committee in from time to time.
7§ 272.3 Federal Open Market Committee—Rules of Procedure
(e) Meeting agendas. The secretary, in con- recommended actions and votes under this par-
sultation with the Chairman, prepares an agraph shall be in writing, by telephone, or
agenda of matters to be discussed at each regu- electronic means; if the communication is
larly scheduled meeting and the secretary made orally, the secretary shall cause a written
transmits the agenda to the members of the record to be made without delay. An action
Committee within a reasonable time in advance taken between meetings has the force and ef-
of such meeting. In general, the agendas in- fect of an action at a meeting; provided, how-
clude reports by the manager on open market ever, that if a meeting is held before the execu-
operations since the previous meeting, and rat- tion of any operations pursuant to the action,
ification by the Committee of such operations; the action is null and void unless it is ratified
reports by economists on, and Committee dis- and confirmed by the Committee at such meet-
cussion of, the economic and financial situation ing.
and outlook; Committee discussion of mone- (c) Other actions between meetings. Cir-
tary policy and action with respect thereto; and cumstances may make it desirable in the public
such other matters as may be considered neces- interest for Committee members to consider
sary. other actions, such as approval of the minutes,
(f) Foreign Currency Subcommittee. Meet- between meetings. In these circumstances, the
ings of the Foreign Currency Subcommittee relevant information and recommendations for
(the “Subcommittee”) shall be called at the re- such action are transmitted to the members by
quest of any Subcommittee member, or at the the secretary, and the members communicate
request of the manager. At the request of any their votes to the secretary. All communica-
member of the Subcommittee, questions aris- tions of recommended actions and votes under
ing from a matter before the Subcommittee this paragraph shall be in writing, by telephone,
shall be referred for determination to the Com- or electronic means; if the communication is
mittee. made orally, the secretary shall cause a written
record to be made without delay.
SECTION 272.4—Committee Actions (d) Delegations of authority. In special cir-
cumstances, the Committee may delegate au-
(a) Actions at meetings. Actions are taken at thority to take an action, subject to such in-
meetings of the Committee except as described structions or guidelines as the Committee
below. deems proper. Such delegations of authority
(b) Policy actions between meetings. Special may be made to the Chairman; to a subcommit-
circumstances may make it desirable in the tee consisting of the Chairman and the Vice
public interest for Committee members to con- Chairman of the Committee and the Vice
sider an action to modify an outstanding Com- Chairman of the Board (or in the absence of the
mittee authorization or directive at a time when Chairman or of the Vice Chairman of the Board
it is not feasible to call a meeting. Whenever, the members of the Board designated by the
in the judgment of the Chairman, such circum- Chairman as alternates, and in the absence of
stances have arisen, the relevant information the Vice Chairman of the Committee the alter-
and recommendations for action are transmit- nate for the Vice Chairman); or to any other
ted to the members by the secretary, and the member or members of the Committee. An ac-
members communicate their votes to the secre- tion taken pursuant to such a delegation of au-
tary. If the action is approved by a majority of thority has the force and effect of an action
the members, advice to that effect is promptly taken by the Committee.
given by the secretary to the members of the (e) Technical changes to Committee rules.
Committee and to the Federal Reserve Bank se- The secretary of the Committee (or the acting
lected to execute transactions for the System secretary) is authorized to make technical cor-
Open Market Account. All communications of rections, such as spelling, grammar, construc-
tion, and organization (including removal of
8§ 272.4 Federal Open Market Committee—Rules of Procedure
obsolete provisions and references), to the is to be effective at some different time.
Committee’s rules, regulations, and orders and
other records of Committee action but only SECTION 272.5—Notice and Public Pro-
with the concurrence of the Committee’s gen- cedure
eral counsel.
(f) Effective date. Committee action ordi- There ordinarily is no published notice of pro-
narily is made effective as of the time it is taken posed action by the Committee or public pro-
because the nature of the subject matter and the cedure thereon, as described in section 553 of
action taken is such that the public interest and title 5 of the United States Code, because such
the proper discharge of the Committee’s re- notice and procedure are impracticable, unnec-
sponsibilities so require. Occasionally, how- essary, or contrary to the public interest.
ever, the Committee may specify that an action
i The words “this part,” as used herein, means Regulations, title 12, chapter II, part 272).
Rules of Procedure of the FOMC (Code of Federal
9Open Market Operations of Federal Reserve Banks
12 CFR 270; as amended effective March 28, 1983
SECTION 270.1—Authority in open market operations under section 14 of
the Federal Reserve Act only in accordance
This part i is issued by the Federal Open Market with this part and with the authorizations and
Committee (the “Committee”) pursuant to directives issued by the Committee from time
authority conferred upon it by sections 12A and to time, and no Federal Reserve Bank shall
14 of the Federal Reserve Act (12 USC 263, decline to engage in open market operations as
directed by the Committee.
355) ii.
(b) Transactions for the System Open Market
Account shall be executed by a Federal
SECTION 270.2—Definitions Reserve Bank selected by the Committee. The
participations of the several Federal Reserve
(a) The term “obligations” means Banks in such account and in the profits and
government securities, U.S. agency securities, losses on transactions for the account shall be
banker’s acceptances, bills of exchange, cable allocated in accordance with principles
transfers, bonds, notes, warrants, debentures, determined by the Committee from time to
and other obligations that Federal Reserve time.
Banks are authorized by law to purchase and (c) In accordance with such limitations,
sell. terms, and conditions as are prescribed by law
(b) The term “government securities” means and in authorizations and directives issued by
direct obligations of the United States (i.e., the Committee, the Federal Reserve Bank
U.S. bonds, notes, certificates of indebtedness, selected by the Committee is authorized and
and Treasury bills) and obligations fully directed—
guaranteed as to principal and interest by the (1) To buy and sell government securities
United States. and U.S. agency securities in the open
(c) The term “U.S. agency securities” means market for the System Open Market
obligations that are direct obligations of, or are Account, and to exchange maturing
fully guaranteed as to principal and interest by, securities with the issuer;
any agency of the United States. (2) To buy and sell banker’s acceptances in
(d) The term “System Open Market the open market for its own account;
Account” means the obligations acquired (3) To buy government securities, U.S.
pursuant to authorizations and directives issued agency securities, and banker’s acceptances
by the Committee and held on behalf of all of the kinds described above, under
Federal Reserve Banks. agreements for repurchase of such
obligations, in the open market for its own
SECTION 270.3—Governing Principles account; and
(4) To buy and sell foreign currencies in
As required by section 12A of the Federal the form of cable transfers in the open market
Reserve Act, the time, character, and volume of for the System Open Market Account and to
all purchases and sales of obligations in the maintain for such account reciprocal
open market by Federal Reserve Banks are currency arrangements with foreign banks
governed with a view to accommodating among those designated by the Board of
commerce and business and with regard to their Governors of the Federal Reserve System
bearing upon the general credit situation of the under section 214.5 of this chapter
country. [Regulation N].
(d) The Federal Reserve Banks are author-
SECTION 270.4—Transactions in Obli- ized and directed to engage in such other oper-
gations ations as the Committee may from time to time
determine to be reasonably necessary to the ef-
(a) Each Federal Reserve Bank shall engage fective conduct of open market operations and
10§ 270.4 Open Market Operations of Federal Reserve Banks
the effectuation of open market policies.
i The words “this part,” as used herein, mean part 270).
Open Market Operations of Federal Reserve Banks ii At 1-108 and 1-129.
(Code of Federal Regulations, title 12, chapter II,
11Procedures for Allocation of Securities in the System Open Market
Account
As amended effective March 28, 1995
1. Securities in the System Open Market notes outstanding.
Account shall be reallocated at least once each 2. Until the next reallocation, the account
year as determined by the Board’s Division of shall be apportioned on the basis of the ratios
Reserve Bank Operations and Payment Sys- determined in paragraph 1.
tems and the manager of the System Open Mar- 3. Profits and losses on the sale of securities
ket Account, for the purpose of settling inter- from the account shall be allocated on the day
District clearings and approximately equaliz- of delivery of the securities sold on the basis of
ing for each Federal Reserve Bank the ratio of each Federal Reserve Bank’s current holdings
gold certificate holdings to Federal Reserve at the opening of business on that day.
12Resolution Authorizing Certain Actions by Federal Reserve Banks
During an Emergency
As amended effective January 27, 2015
The Federal Open Market Committee (the direct obligations of the United States under
“Committee”) hereby authorizes each Federal the last paragraph of section 13 of the Fed-
Reserve Bank to take any or all of the actions eral Reserve Act), such Federal Reserve
set forth below during and following a national Bank may purchase and sell obligations of
security emergency when such Federal Reserve the United States for its own account, either
Bank finds itself unable after reasonable efforts outright or under repurchase agreement,
to be in communication with the Committee or from and to banks, dealers, or other holders
when the Committee is unable to function. Ac- of such obligations.
tion(s) under this authorization will be taken by (2) Such Federal Reserve Banks may en-
a Federal Reserve Bank only after reasonable gage in operations of the types specified in
efforts have been made to consult with the the Committee’s authorization for System
Chair of the Committee or if the latter is not foreign-currency operations when requested
available with the Vice Chair of the Committee to do so by an authorized official of the U.S.
or if both the Chair and the Vice Chair are not Treasury Department; provided, however,
available, with whatever member of the Board that such Federal Reserve Bank shall take all
of Governors may be available to serve as Act- steps practicable at the time to ensure as far
ing Chair as provided for by the Committee’s as possible that, in light of the information
Rules of Organization. In addition, to the extent available on other System foreign-currency
feasible, the action(s) should be coordinated operations, its own operations do not result
with other Federal Reserve Banks with which in the aggregate in breaching any of the sev-
the Federal Reserve Bank is able to communi- eral dollar limits specified in the authoriza-
cate. tion.
(1) Whenever it deems it necessary in the Authority to take the actions set forth shall be
light of economic conditions and the general effective only until such time as the Federal Re-
credit situation then prevailing (after taking serve Bank is able again to establish communi-
into account the possibility of providing nec- cations with the Committee, and such Commit-
essary credit through advances secured by tee is then functioning.
13Guidelines for the Conduct of System Open Market Operations in
Federal-Agency Issues
Temporarily suspended effective January 27, 2009
1. System open market operations in 2. System open market operations in
federal-agency issues are an integral part of to- federal-agency issues are not designed to sup-
tal System open market operations designed to port individual sectors of the market or to chan-
influence bank reserves, money market condi- nel funds into issues of particular agencies.
tions, and monetary aggregates.
14Temporary Authority to Operate System Account
As amended effective January 27, 2015
The Chair of the Federal Open Market Com- tee to execute open market transactions is una-
mittee (the “Committee”) is authorized to ap- ble to function. In the event the Chair exercises
point a Federal Reserve Bank as agent to oper- such authority, the Chair also is authorized to
ate the System Account temporarily in case the appoint a Federal Reserve official to act tem-
Federal Reserve Bank selected by the Commit- porarily as manager of the System Account.
15Federal Open Market Committee—Rules Regarding Availability of
Information
12 CFR 271; as amended effective September 19, 2017
§ 271.1—Authority and Purpose of any such Bank.
(g) Information of the Committee means all
(a) Authority. This part i is issued by the Fed- information coming into the possession of the
eral Open Market Committee (the Committee) Committee or of any member thereof or of any
pursuant to the Freedom of Information Act, officer, employee, or agent of the Committee,
5 U.S.C. 552, and also pursuant to the Commit- the Board, or any Federal Reserve Bank, in the
tee’s authority under section 12A of the Federal performance of duties for, or pursuant to the di-
Reserve Act, 12 U.S.C. 263, to issue regula- rection of, the Committee.
tions governing the conduct of its business. (h) Noncommercial scientific institution re-
(b) Purpose. This part sets forth the catego- fers to an institution that is not operated on a
ries of information made available to the public “commercial” basis (as that term is used in this
and the procedures for obtaining documents section) and which is operated solely for the
and records. purpose of conducting scientific research, the
results of which are not intended to promote
any particular product or industry.
§ 271.2—Definitions (i) Records of the Committee includes rules,
statements, decisions, minutes, memoranda,
(a) Board means the Board of Governors of letters, reports, transcripts, accounts, charts,
the Federal Reserve System established by the and other written material, as well as any ma-
Federal Reserve Act of 1913 (38 Stat. 251). terials in machine-readable form that constitute
(b) Commercial use request refers to a re- a part of the Committee’s official files.
quest from or on behalf of one who seeks infor- (j) Representative of the news media refers
mation for a use or purpose that furthers the to any person actively gathering news for an
commercial, trade, or profit interests of the re- entity that is organized and operated to publish
quester or the person on whose behalf the re- or broadcast news to the public.
quest is made. (1) The term “news” means information
(c) Direct costs mean those expenditures that about current events or that would be of cur-
the Committee actually incurs in searching for, rent interest to the public.
reviewing, and duplicating documents in re- (2) Examples of news-media entities in-
sponse to a request made under § 271.5. clude, but are not limited to, television or ra-
(d) Duplication refers to the process of mak- dio stations broadcasting to the public at
ing a copy of a document in response to a re- large, and publishers of newspapers and
quest for disclosure of records or for inspection other periodicals (but only in those instances
of original records that contain exempt material when they can qualify as disseminators of
or that otherwise cannot be inspected directly. “news”) who make their products available
Among others, such copies may take the form for purchase or subscription by the general
of paper, microform, audiovisual materials, or public.
machine-readable documentation (e.g., mag- (3) “Freelance” journalists may be re-
netic tape or disk). garded as working for a news organization if
(e) Education institution refers to a pre- they can demonstrate a solid basis for expect-
school, a public or private elementary or sec- ing publication through that organization,
ondary school, or an institution of undergradu- even though not actually employed by it.
ate higher education, graduate higher educa- (k)(1) Review refers to the process of examin-
tion, professional education, or an institution of ing documents, located in response to a re-
vocational education that operates a program of quest for access, to determine whether any
scholarly research. portion of a document is exempt infor-
(f) Federal Reserve Bank means one of the mation. It includes doing all that is neces-
District Banks authorized by the Federal Re- sary to excise the documents and otherwise
serve Act, 12 U.S.C. 222, including any branch to prepare them for release.
16§ 271.2 Federal Open Market Committee—Rules Regarding Availability of Information
(2) Review does not include time spent re- (c) Other published information. Other in-
solving general legal or policy issues regard- formation relating to the Committee, including
ing the application of exemptions. its open market operations, is made publicly
(l)(1) Search means a reasonable search, by available on the websites of the Board and the
manual or automated means, of the Commit- Federal Reserve Banks.
tee’s official files and any other files contain-
ing records of the Committee as seem rea- § 271.4—Records Available for Public In-
sonably likely in the particular circum- spection
stances to contain documents of the kind re-
quested. For purposes of computing fees un- (a) Types of records made available. Unless
der § 271.9, search time includes all time they were published promptly and made avail-
spent looking for material that is responsive able for sale or without charge, records de-
to a request, including line-by-line identifi- scribed in 5 USC 552(a)(2) shall be made
cation of material within documents. Such available for inspection in an electronic format
activity is distinct from “review” of material by the Committee.
to determine whether the material is exempt (b) Reading room procedures.
from disclosure. (1) Information described in 5 U.S.C.
(2) Search does not mean or include re- 552(a)(2), such as statements of policy and
search, creation of any document, or exten- records requested three or more times under
sive modification of an existing program or § 271.5, is made available for public inspec-
system that would significantly interfere tion in the Committee’s electronic reading
with the operation of the Committee’s auto- room at www.federalreserve.gov/foia/fomc
mated information system. /readingrooms.htm#rr1, in its conventional
reading room located at the Freedom of In-
§ 271.3—Published Information formation Office of the Board of Governors
of the Federal Reserve System, or both. For
(a) Federal Register. The Committee pub- security reasons, the Board requires that vis-
lishes in the Federal Register, in addition to itors make an appointment to inspect docu-
this part: ments. You may do so by calling the Board’s
(1) A description of its organization; Freedom of Information Office at (202) 452-
(2) Statements of the general course and 3684.
method by which its functions are channeled (2) The Committee may determine that
and determined; certain classes of publicly available filings
(3) Rules of procedure; shall be made available for inspection in
(4) Substantive rules of general applicabil- electronic format only by the Federal Re-
ity, and statements of general policy and in- serve Bank where those records are main-
terpretations of general applicability formu- tained.
lated and adopted by the Committee; (c) [RESERVED]
(5) Every amendment, revision, or repeal (d) Privacy protection. The Committee may
of the foregoing; and delete identifying details from any record to
(6) General notices of proposed rulemak- prevent a clearly unwarranted invasion of per-
ing. sonal privacy.
(b) Annual report to Congress. Each annual
report made to Congress by the Board includes § 271.5—Records Available to the Public
a complete record of the actions taken by the on Request
Committee during the preceding year upon all
matters of policy relating to open market oper-
(a) Types of records made available. All rec-
ations, showing the reasons underlying the ac-
tions, and the votes taken.
17§ 271.5 Federal Open Market Committee—Rules
Committee—Rules Regarding Availability of Information
ords of the Committee that are not available un- § 271.6—Processing Requests
der §§ 271.3 and 271.4 shall be made available
upon request, pursuant to the procedures in this (a) Receipt of requests. The date of receipt
section and the exceptions in § 271.7. for any request, including one that is addressed
(b) Procedures for requesting records. incorrectly or that is referred to the Committee
(1) A request for identifiable records shall by another agency or by a Federal Reserve
reasonably describe the records in a way that Bank, is the date the secretary of the Commit-
enables the Committee’s staff to identify and tee actually receives the request.
produce the records with reasonable effort (b) Priority of responses. The Committee
and without unduly burdening or signifi- shall normally process requests in the order
cantly interfering with any of the Commit- they are received. However, in the secretary’s
tee’s operations. Information that assists discretion, or upon a court order in a matter to
staff in identifying responsive records in- which the Committee is a party, a particular re-
cludes the subject matter and date or time quest may be processed out of turn.
frame of the information requested. (c) Expedited processing. Where a person
(2) The request shall be submitted in writ- requesting expedited access to records has
ing to the secretary of the Committee, Fed- demonstrated a compelling need for the re-
eral Open Market Committee, 20th & C cords, or where the Committee has determined
Streets N.W., Washington, D.C. 20551; or to expedite the response, the Committee shall
sent by facsimile to the Secretary of the process the request as soon as practicable.
Committee, (202) 452–2921; or sent elec- (1) To demonstrate a compelling need for
tronically using the online request form lo- expedited processing, the requester shall pro-
cated at www.federalreserve.gov/forms vide a certified statement, a sample of which
/FOMCForm.aspx. The request shall be may be obtained from the Board’s Freedom
clearly marked FREEDOM OF INFOR- of Information Office. The statement, certi-
MATION ACT REQUEST. fied to be true and correct to the best of the
(c) Contents of request. The request shall requester’s knowledge and belief, shall
contain the following information: demonstrate that:
(1) The name and address of the requester, (i) The failure to obtain the records on
and the telephone number at which the re- an expedited basis could reasonably be ex-
quester can be reached during normal busi- pected to pose an imminent threat to the
ness hours; life or physical safety of an individual; or
(2) Whether the requested information is (ii) The requester is a representative of
intended for commercial use, and whether the news media, as defined in § 271.2, and
the requester represents an educational or there is urgency to inform the public con-
noncommercial scientific institution, or cerning actual or alleged Committee activ-
news media; ity.
(3) A statement agreeing to pay the appli- (2) In response to a request for expedited
cable fees, or a statement identifying any fee processing, the secretary of the Committee
limitation desired, or a request for a waiver shall notify a requester of the determination
or reduction of fees that satisfies § 271.9(f). within 10 working days of receipt of the re-
(d) Defective requests. The Committee need quest. In exceptional situations, the secre-
not accept or process a request that does not tary of the Committee has the discretion to
reasonably describe the records requested or waive the formality of certification. If the
that does not otherwise comply with the re- secretary of the Committee denies a request
quirements of this section. The Committee may for expedited processing, the requester may
return a defective request, specifying the defi- file an appeal pursuant to the procedures set
ciency. The requester may submit a corrected forth in paragraph (h) of this section, and the
request, which will be treated as a new request. Committee shall respond to the appeal within
18§ 271.6 Federal Open Market Committee—Rules Regarding Availability of Information
10 working days after the appeal was re- (5) When an adverse determination is
ceived by the Committee. made (including determinations that the re-
(d) Time limits. The time for response to re- quested record is exempt, in whole or in part;
quests shall be 20 working days, except; the request does not reasonably describe the
(1) In the case of expedited treatment un- records sought; the information requested is
der paragraph (c) of this section; not a record subject to the FOIA; the re-
(2) Where the running of such time is sus- quested record does not exist, cannot be lo-
pended for payment of fees pursuant to cated, or has been destroyed; the requested
§ 271.9(b)(2); record is not readily reproducible in the form
(3) In unusual circumstances, as defined in or format sought by the requester; to deny a
5 U.S.C. 552(a)(6)(B), the Committee may: fee waiver request or other fee categorization
(i) Extend the 20-day time limit for a matter; and to deny a request for expedited
period of time not to exceed 10 working processing), the secretary will advise the re-
days, where the Committee has provided quester in writing of that determination and
written notice to the requester, setting will further advise the requester of:
forth the reasons for the extension and the (i) The right to appeal to the Committee
date on which a determination is expected any adverse determination, as specified in
to be dispatched; and paragraph (h) of this section;
(ii) Extend the 20-day time limit for a (ii) The right to seek dispute resolution
period of more than 10 working days services from the Committee’s FOIA Pub-
where the Committee has provided the re- lic Liaison or from the Office of Govern-
quester with an opportunity to limit the ment Information Services; and
scope of the request so that it may be pro- (iii) The name and title or position of the
cessed within that time frame or with an person responsible for the adverse deter-
opportunity to arrange an alternative time mination.
frame for processing the original request (f) Referral to another agency. To the extent
or a modified request, and has notified the a request covers documents that were created
requester that the Committee’s FOIA Pub- by, obtained from, or classified by another
lic Liaison is available to assist the re- agency, the Committee may refer the request to
quester for this purpose and in the resolu- that agency for a response and inform the re-
tion of any disputes between the requester quester promptly of the referral.
and the Committee and of the requester’s (g) Providing responsive records.
right to seek dispute resolution services (1) Copies of requested records shall be
from the Office of Government Infor- sent to the requester by regular U.S. mail to
mation Services. the address indicated in the request, or sent
(e) Response to request. In response to a re- in electronic format to the e-mail address in-
quest that satisfies § 271.5, an appropriate dicated in the request, unless the requester
search shall be conducted of records of the elects to take delivery of the documents at
Committee in existence on the date of receipt the Board’s Freedom of Information Office
of the request, and a review made of any re- or makes other acceptable arrangements, or
sponsive information located. The secretary the Committee deems it appropriate to send
shall notify the requester of: the documents by another means.
(1) The Committee’s determination of the (2) The Committee shall provide a copy of
request; the record in any form or format requested if
(2) The reasons for the determination; the record is readily reproducible by the
(3) The amount of information withheld; Committee in that form or format, but the
(4) The right of the requester to seek assis- Committee need not provide more than one
tance from the Committee’s FOIA Public Li- copy of any record to a requester.
aison; and (h) Appeal of an adverse determination. A
19§ 271.6 Federal Open Market Committee—Rules Regarding Availability of Information
requester may appeal an adverse determination secret in the interest of national defense or
by filing a written appeal with the Committee, foreign policy and is in fact properly classi-
as follows: fied pursuant to the executive order.
(1) The appeal shall prominently display (2) Internal personnel rules and practices.
the phrase FREEDOM OF INFORMATION Any information related solely to the internal
ACT APPEAL on the first page, and shall be personnel rules and practices of the Board.
addressed to the Secretary of the Committee, (3) Statutory exemption. Any information
Federal Open Market Committee, 20th and C specifically exempted from disclosure by
Streets N.W., Washington, D.C. 20551; or statute (other than 5 U.S.C. 552(b)), if the
sent by facsimile to the secretary of the Com- statute:
mittee, (202) 452-2921; or sent by e-mail to (i) Requires that the matters be withheld
the secretary of the Committee at FOMC- from the public in such a manner as to
FOIA-Mailbox@frb.gov. leave no discretion on the issue; or
(2) An initial request for records may not (ii) Establishes particular criteria for
be combined in the same letter with an ap- withholding or refers to particular types of
peal. matters to be withheld.
(3) The Committee, or such member of the (4) Trade secrets; commercial or financial
Committee as is delegated the authority, information. Any matter that is a trade secret
shall make a determination regarding any ap- or that constitutes commercial or financial
peal within 20 working days of actual receipt information obtained from a person and that
of the appeal by the secretary. If an adverse is privileged or confidential.
determination is upheld on appeal, in whole (5) Inter- or intra-agency memorandums.
or in part, the determination letter shall no- Information contained in inter- or intra-
tify the appealing party of the right to seek agency memorandums or letters that would
judicial review and of the availability of dis- not be available by law to a party (other than
pute resolution services from the Office of an agency) in litigation with an agency, in-
Government Information Services as a non- cluding, but not limited to:
exclusive alternative to litigation. (i) Memorandums;
(ii) Reports;
§ 271.7—Exemptions from Disclosure (iii) Other documents prepared by the
staffs of the Committee, Board or Federal
(a) Types of records exempt from disclosure. Reserve Banks; and
Pursuant to 5 U.S.C. 552(b), the following rec- (iv) Records of deliberations of the Com-
ords of the Committee are exempt from disclo- mittee and of discussions at meetings of
sure under this part. The Committee will with- the Committee or its staff.
hold records or information only when it rea- (6) Personnel and medical files. Any in-
sonably foresees that disclosure would harm an formation contained in personnel and medi-
interest protected by an exemption described in cal files and similar files the disclosure of
5 U.S.C. 552(b) and in this paragraph 271.7(a), which would constitute a clearly unwar-
or when disclosure is prohibited by law. In ap- ranted invasion of personal privacy.
plying the exemption in subparagraph (a)(5) of (7) Information compiled for law enforce-
this section, the Committee will not withhold ment purposes. Any records or information
records based on the deliberative process priv- compiled for law enforcement purposes, to
ilege if the records were created 25 years or the extent permitted under 5 USC 552(b)(7).
more before the date on which the records were (8) Examination, inspection, operating, or
requested. condition reports, and confidential supervi-
(1) National defense. Any information sory information. Any matter that is con-
that is specifically authorized under criteria tained in or related to examination, operat-
established by an executive order to be kept
20§ 271.7
271.6 Federal Open Market Committee—Rules
Committee—Rules Regarding Availability of Information
ing, or condition reports prepared by, on be- information for the performance of official du-
half of, or for the use of an agency responsi- ties).
ble for the regulation or supervision of finan-
cial institutions, including a state financial § 271.8—Subpoenas
institution supervisory agency.
(b) Segregation of nonexempt information. (a) Advice by person served. If any person,
The Committee shall provide any reasonably whether or not an officer or employee of the
segregable portion of a record that is requested Committee, of the Board of Governors of the
after deleting those portions that are exempt Federal Reserve System, or of a Federal Re-
under this section. serve Bank, has information of the Committee
(c) Discretionary release. Except where dis- that may not be disclosed by reason of § 271.7
closure is expressly prohibited by statute, reg- and in connection therewith is served with a
ulation, or order, the Committee may authorize subpoena, order, or other process requiring the
the release of records that are exempt from person’s personal attendance as a witness or the
mandatory disclosure whenever the Committee production of documents or information upon
or designated Committee members determines any proceeding, the person should promptly in-
that such disclosure would be in the public in- form the secretary of the Committee of such
terest. service and of all relevant facts, including the
(d) Delayed release. Publication in the Fed- documents and information requested and any
eral Register or availability to the public of cer- facts that may be of assistance in determining
tain information may be delayed if immediate whether such documents or information should
disclosure would likely: be made available; and the person should take
(1) Interfere with accomplishing the objec- action at the appropriate time to inform the
tives of the Committee in the discharge of its court or tribunal that issued the process, and the
statutory functions; attorney for the party at whose instance the pro-
(2) Interfere with the orderly conduct of cess was issued, if known, of the substance of
the foreign affairs of the United States; this part.
(3) Permit speculators or others to gain un- (b) Appearance by person served. Except as
fair profits or other unfair advantages by disclosure of the relevant information is au-
speculative trading in securities or other- thorized pursuant to this part, any person who
wise; has information of the Committee and is re-
(4) Result in unnecessary or unwarranted quired to respond to a subpoena or other legal
disturbances in the securities markets; process shall attend at the time and place
(5) Interfere with the orderly execution of therein mentioned and decline to disclose such
the objectives or policies of other govern- information or give any testimony with respect
ment agencies; or thereto, basing such refusal upon this part. If,
(6) Impair the ability to negotiate any con- notwithstanding, the court or other body orders
tract or otherwise harm the commercial or fi- the disclosure of such information, or the giv-
nancial interest of the United States, the ing of such testimony, the person having such
Committee, the Board, any Federal Reserve information of the Committee shall continue to
Bank, or any department or agency of the decline to disclose such information and shall
United States. promptly report the facts to the Committee for
(e) Prohibition against disclosure. Except as such action as the Committee may deem appro-
provided in this part, no officer, employee, or priate.
agent of the Committee or any Federal Reserve
Bank shall disclose or permit the disclosure of § 271.9—Fee Schedules; Waiver of Fees
any unpublished information of the Committee
to any person (other than Committee officers,
(a) Fee schedules. The fees applicable to a
employees, or agents properly entitled to such
21§ 271.9 Federal Open Market Committee—Rules Regarding Availability of Information
request for records pursuant to §§ 271.4 and are requested for commercial use.
271.5 are set forth in appendix A to this section. (2) Educational, research, or media use.
These fees cover only the full allowable direct The fees for duplication apply when records
costs of search, duplication, and review. No are not sought for commercial use, and the
fees will be charged where the average cost of requester is a representative of the news me-
collecting the fee (calculated at $5.00) exceeds dia or an educational or noncommercial sci-
the amount of the fee. entific institution, whose purpose is schol-
(b) Payment procedures. The secretary may arly or scientific research. The first 100
assume that a person requesting records pursu- pages of duplication, however, will be pro-
ant to § 271.5 will pay the applicable fees, un- vided free.
less the request includes a limitation on fees to (3) All other uses. For all other requests,
be paid or seeks a waiver or reduction of fees the fees for document search and duplication
pursuant to paragraph (f) of this section. apply. The first two hours of search time and
(1) Advance notification of fees. If the es- the first 100 pages of duplication, however,
timated charges are likely to exceed $100, will be provided free.
the secretary of the Committee shall notify (d) Nonproductive search. Fees for search
the requester of the estimated amount, unless and review may be charged even if no respon-
the requester has indicated a willingness to sive documents are located or if the request is
pay fees as high as those anticipated. Upon denied.
receipt of such notice, the requester may con- (e) Aggregated requests. A requester may
fer with the secretary to reformulate the re- not file multiple requests at the same time,
quest to lower the costs. solely in order to avoid payment of fees. If the
(2) Advance payment. The secretary may secretary reasonably believes that a requester is
require advance payment of any fee esti- separating a request into a series of requests for
mated to exceed $250. The secretary may the purpose of evading the assessment of fees,
also require full payment in advance where a the secretary may aggregate any such requests
requester has previously failed to pay a fee in and charge accordingly. It is considered rea-
a timely fashion. The time period for re- sonable for the secretary to presume that mul-
sponding to requests under § 271.6(d), and tiple requests of this type made within a 30-day
the processing of the request shall be sus- period have been made to avoid fees.
pended until the secretary receives the re- (f) Waiver or reduction of fees. A request for
quired payment. a waiver or reduction of the fees, and the justi-
(3) Late charges. The secretary may as- fication for the waiver, shall be included with
sess interest charges when fee payment is not the request for records to which it pertains. If
made within 30 days of the date on which the a waiver is requested and the requester has not
billing was sent. Interest is at the rate pre- indicated in writing an agreement to pay the ap-
scribed in 31 U.S.C. 3717 and accrues from plicable fees if the waiver request is denied, the
the date of the billing. time for response to the request for documents,
(c) Categories of uses. The fees assessed de- as set forth in section 271.6(d), shall not begin
pend upon the intended use for the records re- until a determination has been made on the re-
quested. In determining which category is ap- quest for a waiver or reduction of fees.
propriate, the secretary shall look to the in- (1) Standards for determining waiver or
tended use set forth in the request for records. reduction. The secretary shall grant a waiver
Where a requester’s description of the use is in- or reduction of fees where it is determined
sufficient to make a determination, the secre- both that disclosure of the information is in
tary may seek additional clarification before the public interest because it is likely to con-
categorizing the request. tribute significantly to public understanding
(1) Commercial use. The fees for search, of the operation or activities of the govern-
duplication, and review apply when records ment, and that the disclosure of information
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