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Federal Reserve Act
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles
J Woelfel
(We recommend this as work of authority and you can order
it here)
The Federal Reserve
Act provides that no Federal Reserve bank shall engage or decline to engage
in open market operations except in accordance with the direction of and
regulations adopted by the committee; and that the committee shall consider,
adopt, and transmit to the several Federal Reserve banks regulations relating
to open market transactions.
The act also provides
that the time, character, and volume of all purchases and sales of paper
described in Section 14 of the Federal Reserve Act as media for open market
operations shall be governed with a view to accommodating commerce and
business and with regard to their bearing upon the general credit situation
of the country. The board
of governors is further directed by the act to keep a complete record
of the actions taken by the open market committee upon all questions of
policy relating to open market operations, including a record of votes
taken in deciding policies and the reasons underlying the actions of the
committee in each instance. This
record is published periodically in the Federal
Reserve Bulletin, and is included in the annual report of the board
of governors to Congress.
BIBLIOGRAPHY
FEDERAL
RESERVE SYSTEM, Purposes & Functions.
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