[Federal Register Volume 72, Number 40 (Thursday, March 1, 2007)]
[Notices]
[Page 9337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-3540]


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FEDERAL RESERVE SYSTEM


Federal Open Market Committee; Rules of Organization

AGENCY: Federal Open Market Committee.

ACTION: Notice; Amendment to Rules of Organization.

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SUMMARY: The Federal Open Market Committee (the ``Committee'') has 
amended its Rules of Organization to allow for the appointment of a 
temporary manager of the System Open Market Account in certain 
circumstances.

DATES: The amendments to the Rules of Organization became effective on 
January 30, 2007.

FOR FURTHER INFORMATION CONTACT: Kieran J. Fallon, Assistant General 
Counsel (202-452-5270), April Snyder, Senior Attorney (202-452-3099), 
Legal Division; Board of Governors of the Federal Reserve System; 
Deborah J. Danker, Deputy Secretary (202-452-3253), or Matthew Luecke, 
Senior Financial Analyst, (202-452-2576); Federal Open Market 
Committee, 20th Street and Constitution Avenue, NW., Washington, DC 
20551. Users of Telecommunication Device for Deaf (TTD) only, call 
(202) 263-4869.

SUPPLEMENTARY INFORMATION: The Committee is composed of the members of 
the Board of Governors of the Federal Reserve System and five 
representatives of the Federal Reserve Banks, selected in the manner 
set forth in section 12A of the Federal Reserve Act (12 U.S.C. 263(a)). 
The Committee's Rules of Organization provide for the Committee to 
select a manager of the System Open Market Account, which is the 
account through which open market transactions are conducted on behalf 
and under the direction of the Committee.\1\ The manager keeps the 
Committee informed on market conditions and on transactions made for 
the System Open Market Account and renders such reports as the 
Committee may specify. The Rules of Organization also provide that the 
manager selected by the Committee shall be satisfactory to the Federal 
Reserve Bank selected by the Committee to execute transactions for the 
System Open Market Account (``executing Reserve Bank'').
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    \1\ See Committee Rules of Organization, Sec.  5.
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    The manager serves at the pleasure of the Committee. The Committee 
has amended its Rules of Organization to also provide that if the 
President of the executing Reserve Bank determines that the manager is 
not able to perform the duties of the position, the Chairman of the 
Committee may select, with the concurrence of such President, another 
person to serve temporarily as manager until the Committee and the 
executing Reserve Bank select a replacement manager in accordance with 
the Committee's Rules of Organization. This provision is designed to 
facilitate the smooth and uninterrupted operation of the System Open 
Market Account in the event that a manager becomes unable to serve in 
the position.
    The Committee has incorporated the amendments into the Committee's 
Rules of Organization. The Committee's Rules of Organization are 
uncodified regulations for use by the Committee and are issued pursuant 
to 5 U.S.C. 552. Because the amendments relate solely to the internal 
organization, procedure, or practice of the Committee, the public 
notice, public comment, and delayed effective date provisions of the 
Administrative Procedure Act do not apply.\2\
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    \2\ See 5 U.S.C. 553(b) and (d).
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    For the reasons discussed above, the Committee has amended its 
Rules of Organization as follows:
    1. The following sentence is added at the end of Sec.  5 of the 
Rules of Organization:

Section 5--Manager

    * * * In the event that the President of the Federal Reserve Bank 
selected by the Committee determines that the manager is not able to 
perform the duties of the position, the Chairman may select a person 
satisfactory to such President to serve as manager until the Committee 
and the designated Reserve Bank select a replacement manager in 
accordance with this section.

    By order of the Federal Open Market Committee, February 23, 
2007.
Vincent R. Reinhart,
Secretary, Federal Open Market Committee.
[FR Doc. E7-3540 Filed 2-28-07; 8:45 am]
BILLING CODE 6210-01-P