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FEDERAL OPEN M ARKET COMMITTEE
RULES OF ORGANIZATION AND PROCEDURE
Issued P u rsuan t to
ADMINISTRATIVE PROCEDURE ACT
AND FEDERAL RESERVE ACT
As a m en d ed effectiv e A p ril 1 7 , 1 9 6 2
CONTENTS
RULES O F ORGAN IZATIO N ____________________________________________ p .
3
RULES REGARDING INFORM ATION, SURM ITTALS, AND
REQUESTS ________________________________________________________ p .
7
RULES OF PROCEDU RE_______________________________________________ p .
13
RULES OF ORGANIZATION
CONTENTS
Page
S ec . 1. B a s is
and
S c o p e ...........................................................................................................................
S ec . 2. C o m p o s it io n
and
M
(a) Members
3
C o m m i t t e e ............................................................
3
...........................................................................................
3
e e t in g s of
(b ) Chairman and Vice Chairman......................................................
3
(c) M e e tin g s.............................................................................................
3
S ec . 3. P e r s o n n e l ....................................................................................................................................
3
(a) Official S t a ff.......................................................................................
3
(b) Others ................................................................................................
4
1
o
o
RULES OF ORGANIZATION *
As amended effective April 17, 1962
SECTION 1— BASIS AN D SCOPE
These rules are issued by the Federal Open Market Committee
(hereinafter sometimes called the Committee) pursuant to the Ad
ministrative Procedure Act (60 Stat. 237; 5 U.S.C. 1001) and the
Federal Reserve Act (sec. 12A, 48 Stat. 168; 12 U.S.C. 263). Included
therein are the rules specified by section 3(a) (1) of the Administrative
Procedure Act.
SECTION 2—CO M POSITIO N A N D M E E TIN G S OF C O M M IT T E E
(a) Members.— The Federal Open Market Committee consists of
the members of the Board of Governors of the Federal Reserve System
and five representatives of the Federal Reserve Banks who are Presi
dents or First Vice Presidents of such banks. The representatives of
the Federal Reserve Banks, and an alternate for each representative,
are elected in accordance with section 12A of the Federal Reserve Act
for terms of one year commencing on March 1 of each year.
( b ) Chairman and Vice Chairman.— At its first meeting on or
after March 1 of each year, the Committee selects a Chairman and a
Vice Chairman from among its membership.
(c) Meetings.— The Committee meets at Washington, D. C., on call
by the Chairman of the Board of Governors of the Federal Reserve
System or at the request of three members of the Committee, at least
four times each year and oftener if deemed necessary.
SECTION 3— PERSO NNEL
(a)
Official Staff.— The official staff of the Federal Open Market
Committee includes its Secretary and Assistant Secretaries, General
Counsel and Assistant General Counsel, and Economist and Associate
Economists, who perform the duties indicated by their titles. These
staff members are selected from among the officers and employees of the
Board of Governors of the Federal Reserve System and the Federal
Reserve Banks. In addition, one of the Federal Reserve Banks is
*
The text is not included in the Code of Federal Regulations and therefore may not be
cited with a code reference.
3
4
RULES OF ORGANIZATION
selected by the Committee to execute transactions for the System Open
Market Account; and the Committee selects a Manager of the System
Open Market Account and a Special Manager for foreign currency
operations for such Account, both of whom shall be satisfactory to such
Federal Reserve Bank.
(6)
Others.— The services of other officers and employees of the
Board of Governors of the Federal Reserve System and Federal Re
serve Banks are made available and are utilized by the Committee as
required.
RULES REGARDING INFORMATION, SUBMITTALS,
AND REQUESTS
CONTENTS
Sec.
271.1.
B a s is
Sec.
271.2.
S u b m it t a l s , P e t it io n s ,
Sec.
Sec.
2713.
271.4.
and
S c o p e ...........................................................................................
7
R e q u e s t s ..................................................
7
and
(a) Place ...................................................................................................
7
(b ) M e t h o d ...............................................................................................
7
I n f o r m a t io n ....................................................................
7
(a) Federal R e g is te r...............................................................................
7
(b ) Policy R e c o r d ...................................................................................
7
A v a il a b il it y
of
(c) Unpublished Information .............................................................
8
( d) Reasons for Nondisclosure ..........................................................
8
(e) Requests for Unpublished Information .....................................
9
.....................................................................................................
9
Subpoenas
(a) Advice by Person Served................................................................
9
( b ) Appearance by Person Served......................................................
9
5
RULES REGARDING INFORMATION, SUBMITTALS,
AND REQUESTS *
(12 C F R P A R T 271)
As amended effective April 17, 1962
SECTION 271.1— BASIS AN D SCOPE
This part is issued by the Federal Open Market Committee (some
times called the Committee in this part) pursuant to the Administra
tive Procedure Act (60 Stat. 237; 5 U.S.C. 1001) and the Federal
Reserve Act (sec. 12A, 48 Stat. 168; 12 U.S.C. 263). It includes the
rules specified by sections 3(b) and 3 (c) of the Administrative Pro
cedure Act.
SECTION 271.2— SU BM ITTALS, PETITIO N S, A N D REQUESTS
(a) Place.— The mailing address of the Federal Open Market Com
mittee is: Federal Reserve Building, 20th Street and Constitution
Avenue, Washington 25, D. C. The Committee customarily meets at
the offices of the Board of Governors of the Federal Reserve System at
that address.
(b) Method.— All submittals, petitions, and requests, including re
quests for access to information, shall be made in writing and mailed
to the Committee at the address stated in paragraph (a) of this section.
Any petition or request shall be signed by the person making it, or
his duly authorized agent, and shall, in so far as practicable, clearly,
completely, and concisely state his full name and address, the facts
involved (including the purposes for which any unpublished informa
tion requested will be used if made available), the action desired, the
person’s interest in the matter, and the reasons why the petition or
request should be granted.
SECTIO N 271.3— A V A IL A B IL IT Y OF IN F O R M A T IO N
(a) Federal Register.— Rules describing the Committee’s organiza
tion and procedure and any substantive rules or statements of policy
which are formulated and adopted by the Committee for the guidance
of the public will be published in the Federal Register.
(b) Policy Record.— A complete record of the actions taken by
the Committee during the preceding year upon all matters of policy
relating to open market operations, showing the votes taken and the
• The text corresponds to the Code of Federal Regulations, Title 12, Chapter II, Part 271;
cited as 12 CFR Part 271.
7
R U L E S R E G A R D IN G IN F O R M A T IO N
8
reasons underlying the actions, is included in each annual report made
to Congress by the Board of Governors of the Federal Reserve System
in accordance with section 10 of the Federal Reserve Act.
(c) Unpublished Information.— Except as may be specifically
authorized by the Committee, or as may be required in the performance
of duties for, or pursuant to the direction of, the Committee, no person
shall disclose, or permit the disclosure of, any unpublished information
of the Committee to anyone, whether by giving out or furnishing such
information or copy thereof, by allowing any person to inspect, examine
or copy such information or copy thereof, or by any other means.
Unpublished information of the Committee shall include all informa
tion concerning the proceedings, deliberations, discussions, and actions
of the Committee and all information or advice coming to the Com
mittee or to any member of the Committee or any officer, employee or
agent of the Committee, the Board of Governors of the Federal Re
serve System, or any Federal Reserve Bank, in the performance of
duties for, or pursuant to the direction of, the Committee, whether
contained in files, memoranda, documents, reports, books, accounts,
records, or papers or otherwise acquired and whether located at the
offices of the Board of Governors of the Federal Reserve System, the
Federal Reserve Banks, or elsewhere: Provided, That it shall not in
clude information which has been published in accordance with para
graphs (a) and (b) of this section or information which is available to
the public through other sources.
(d) Reasons for Nondisclosure.— The nondisclosure of unpub
lished information of the Committee generally is required in the public
interest for one or more of the following reasons:
(1) Disclosure of unpublished information concerning policies
with respect to future open market operations which are under
consideration or have been adopted by the Committee, and of
unpublished information which might aid in anticipating action
by the Committee, would:
(i) Interfere with the accomplishment of the objectives of
the Committee’s actions taken with a view to accommodating
commerce and business and with regard to their bearing upon
the general credit situation of the country;
(ii) Permit speculators and others to reap unfair profits or
other unfair advantages by speculative trading in securities,
foreign exchange, and otherwise;
(Hi) Interfere with the orderly execution of policies adopted
by the Committee;
(iv ) Result in unnecessary and unwarranted disturbances
RULES REGARDING INFORM ATION
9
in the securities market;
(v) Make open market operations more costly to the Fed
eral Reserve Banks;
(vi) Interfere with the orderly execution and accomplish
ment of the objectives of policies adopted by other Govern
ment agencies concerned with economic and fiscal matters;
and
(vii) Cause misinterpretations and misunderstandings, with
possible resultant impairment of public confidence in the
nation’s financial structure.
(2)
The Committee’s unpublished information includes much
that is furnished to it on a secret or confidential basis and its dis
closure would:
(i) Have the effects described in subparagraph (1) of this
paragraph;
(u)
Impede the necessary collection of information and
advice, much of which cannot be obtained except on a con
fidential and voluntary basis; and
(iii)
Unreasonably and unnecessarily disturb and interfere
with individual privacy and confidential business relation
ships.
(e)
Requests for Unpublished Information.— Requests for access
to unpublished information will be granted only if it clearly appears
that disclosure of the information will not be contrary to the public
interest for any of the reasons set forth in paragraph (d) of this section.
SECTION 271.4— SUBPOENAS
(a) Advice by Person Served.— If any person, whether or not an
officer or employee of the Committee, of the Board of Governors of
the Federal Reserve System, or of a Federal Reserve Bank, has unpub
lished information of the Committee and in connection therewith is
served with a subpoena, order, or other process requiring his personal
attendance as a witness or the production of documents or information
upon any proceeding, he shall promptly advise the Committee of such
service and of all relevant facts, including the documents and informa
tion requested and any facts which may be of assistance in determining
whether such documents or information should be made available; and
he shall take action at the appropriate time to advise the court or
tribunal which issued the process, and the attorney for the party at
whose instance the process was issued, if known, of the substance of
this part.
(b) Appearance by Person Served.— Except as disclosure of the
10
R U L E S R E G A R D IN G IN F O R M A T IO N
relevant information has been authorized pursuant to this part, any
such person who has unpublished information of the Committee and
is required to respond to a subpoena or other legal process shall attend
at the time and place therein mentioned and respectfully decline to
produce any documents or disclose any information or give any
testimony with respect thereto, basing his refusal upon this part. If,
notwithstanding, the court or other body orders the production of any
documents, disclosure of any information, or giving of any testimony,
the person having such unpublished information of the Committee shall
promptly report the facts to the Committee for such action as the
Committee may deem appropriate.
RULES OF PROCEDURE
CONTENTS
Page
S ec.
272.1.
B a s i s a n d S c o p e ............................................................................................................................
13
Sec.
272.2.
C o m m it t e e
..................................................................................................................
13
S ec.
272.3.
N o t ic e a n d P u b l i c P r o c e d u r e ..........................................................................................
14
S ec.
272.4.
E f f e c t iv e D a te
14
S ec.
272.5.
S u b m it t a l s , P e t it io n s , a n d
A c t io n
............................................................................................................................
R equests
11
................................................................
14
3
)
RULES OF PROCEDURE *
(12 CPU P A R T 272)
As amended effective April 17, 1962
SECTION 272.1— BASIS AN D SCOPE
This part is issued by the Federal Open Market Committee (some
times called the Committee in this part) pursuant to the Administrative
Procedure Act (60 Stat. 237; 5 U.S.C. 1001) and the Federal Reserve
Act (sec. 12A, 48 Stat. 168; 12 U.S.C. 263). It includes the rules
specified by section 3(a) (2) of the Administrative Procedure Act.
SECTION 272.2—C O M M IT T E E AC TION
The function of the Committee is the direction and regulation of open
market operations which are conducted by the Federal Reserve Banks.
This involves the determination of the policies which are to be pursued
with respect to open market operations by the Federal Reserve Banks
with a view to accommodating commerce and business and with regard
to their bearing upon the general credit situation of the country, to
gether with consideration and action upon incidental matters relating
to the manner in which such operations are to be conducted. The dis
charge of the Committee’s responsibilities requires the continuous
gathering of information and study of changing financial, economic,
and credit conditions and other pertinent considerations by the mem
bers of the Committee and its personnel. These activities are closely
interrelated with other activities of the Board of Governors of the
Federal Reserve System and the Federal Reserve Banks and all rele
vant information and views developed by these organizations are avail
able to the Committee. With this background, action is taken by the
Committee upon its own initiative at periodic meetings held at least
four times each year and oftener if deemed necessary. Attendance at
Committee meetings is restricted to members of the Committee and
its official staff, including the Manager of the System Open Market
Account and the Special Manager for foreign currency operations for
such Account, the Presidents of Federal Reserve Banks who are not
at the time members of the Committee, and such other advisers as the
Committee may invite from time to time. The Committee acts through
the adoption and transmittal of directives and regulations to the Fed
eral Reserve Banks. Operations in the System Open Market Account
are conducted pursuant to directives issued by the Committee.
*
The text corresponds to the Code of Federal Regulations, Title 12, Chapter II, Part 272 :
cited as 12 CFR Part 272.
13
RULES OF PROCEDURE
14
SECTION 272.3— N O TICE A N D PUBLIC PRO CE D U RE
There ordinarily will be no published notice of proposed action by
the Committee or public procedure thereon, as described in section 4
of the Administrative Procedure Act (sec. 4, 60 Stat. 238), because
such notice and procedure is impracticable, unnecessary, or contrary
to the public interest for one or both of the following reasons:
(a) Nondisclosure of information is required in the public interest
for reasons stated in §271.3{d) of this subchapter; and
(b) Expeditious and timely action, without the delay incident to
such notice and procedure, is required in the public interest.
SECTION 272.4—E FFE C TIV E D A TE
Committee action ordinarily will be made effective on the date the
action is taken because the nature of the subject matter and the action
taken is such that the public interest and the proper discharge of the
Committee’s responsibilities so require.
SECTION 272.5—SU BM ITTALS, PETITION S, AN D REQUESTS
Submittals, petitions, and requests may be made to the Committee
at any time in the manner stated in §271.2 of this subchapter. They
will be considered by members of the Committee’s official staff and,
where appropriate, will be brought to the attention of the members
of the Committee for consideration and any necessary action.
@FedFRASER