Actions by the Federal Reserve System to decrease the money supply by curtailing the funds banks have available to lend.
The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve System that determines the direction of monetary policy specifically by directing open market operations.
The Federal Reserve Open Market Committee (FOMC) is a branch of the Federal Reserve Board that determines the direction of monetary policy specifically by directing open market operations.
Monetary policy comprises the procedures by which governments or central banks try to affect macroeconomic conditions by influencing the supply of money. This can be achieved through various mechanisms aside from printing more money, including open-market operations, adjusting reserve requirements, and changing interest rates.
Open-Market Operations (OMO) are activities conducted by the securities department of the Federal Reserve Bank of New York, often referred to as the 'Desks', under the direction of the Federal Open Market Committee (FOMC). These operations involve the buying and selling of government securities to regulate the money supply within the economy.
Quantitative easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market to increase the money supply and encourage lending and investment.
