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Can you summarize 12 CFR Part 272?
FEDERAL OPEN MARKET COMMITTEE > RULES OF PROCEDURE
Short Summary
The Rules of Procedure govern the procedures followed by the Federal Open Market Committee (FOMC) in relation to the regulation and direction of open market operations conducted by the Federal Reserve banks, as well as certain direct transactions between the Reserve banks and the United States. The Committee considers various information, including business and credit conditions, domestic and international economic and financial developments, and other pertinent information gathered by its staff and the staffs of the Board of Governors of the Federal Reserve System and the Federal Reserve banks. Based on this information, the Committee takes actions to regulate and direct the open market operations of the Reserve banks. These policy actions are typically communicated through the adoption and transmission of regulations, authorizations, and directives to the Federal Reserve banks. The Rules of Procedure also outline the rules and procedures governing the meetings of the Federal Open Market Committee (FOMC). The FOMC is responsible for making decisions regarding monetary policy and open market operations. The document specifies that the Committee meets in Washington, DC, at least four times a year, and more frequently if necessary. Meetings can be called by the Chair of the Board or at the request of any three members of the Committee. The Secretary of the Committee provides written, telephone, or electronic notices to the members regarding the calls for meetings. The document also allows for members to participate in meetings through telephone conference arrangements or electronic means if they cannot be present in person. It further states that each member of the Committee has an alternate who can attend meetings in their absence. A quorum of seven members, including at least one representative from a Federal Reserve Bank, is required for transacting business. Attendance at meetings is restricted to specific individuals, including members and alternate members of the Committee, Presidents of Federal Reserve Banks, staff officers, the Manager, and invited advisers. The Secretary, in consultation with the Chair, prepares an agenda for each meeting, which includes reports on open market operations, economic and financial situation, monetary policy, and other necessary matters. The Rules of Procedure also outline the procedures and actions of the Federal Open Market Committee (FOMC). The FOMC takes actions at meetings, but in special circumstances, actions may be taken between meetings. These actions are communicated to the members by the Secretary, and if approved by a majority of the members, they have the same effect as actions taken at a meeting. The FOMC may also delegate authority to take actions to the Chair, a subcommittee, or other members of the Committee. Technical changes to the Committee’s rules can be made by the Secretary with the concurrence of the Committee’s General Counsel. Committee actions are typically effective at the time they are taken, but the Committee may specify a different effective date if necessary. There ordinarily is no published notice of proposed action by the Committee or public procedure thereon, as described in section 553 of title 5 of the United States Code, because such notice and procedure are impracticable, unnecessary, or contrary to the public interest.
Whom does it apply to?
Members and alternate members of the Committee, Presidents of Federal Reserve Banks, staff officers, the Manager, and invited advisers
What does it govern?
Procedures followed by the Federal Open Market Committee (FOMC) in relation to the regulation and direction of open market operations conducted by the Federal Reserve banks, as well as certain direct transactions between the Reserve banks and the United States
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
U.S. Federal Government