This Committee meets about every six weeks, more often if necessary, to establish policy. Committee members include the seven members of the Board of Governors, the president of the New York Reserve Bank, and four other Reserve Bank presidents who serve one-year terms on a rotating basis. All 12 Reserve Bank presidents attend Federal Open Market Committee meetings, however, along with managers of the System's open market and foreign accounts, some senior Board staff members, and a senior economist from each Reserve Bank. Thus, the policymakers, their chief advisers, and those who implement policy for the Committee are all apprised of System policy objectives. Committee meetings generally fall into four parts a review of recent actions by the managers of the System accounts, a discussion of general economic conditions, a discussion of financial conditions and monetary policy alternatives, and finally, a vote on monetary policy by Committee members.
Discussion is quite free, and there often is considerable diversity of opinion.
Twice each year, in accordance with law, the Committee establishes its long-term goals for monetary policy and reports them to Congress. Between meetings, the various policymakers stay in touch through written and electronic correspondence. In addition, Board staff and a Committee member talk with the New York Reserve Bank daily by conference call. Telephone meetings of the entire Committee may be called on very short notice, if necessary, and any member is free to object at any time to the manner in which the instructions of the Committee are being carried out.