Federal Reserve System (the Fed) and the FOMC

• The US Federal Reserve System (Fed) is the central bank of the US. It is comprised of a seven-member Board of Governors in Washington, DC and the 12 regional Federal Reserve Banks located around the country.
• The Federal Open Market Committee (FOMC) is the main decision-making body of the Fed. THE FOMC MEETS NEXT WEDNESDAY SO YOU WILL HEAR MORE AND MORE ABOUT IT
• One main difference between the Fed and other central banks is its mandate. Most central banks only have to keep inflation in check, while the Fed is required to promote both “maximum employment” as well as “stable prices.” These goals are sometimes seen as contradictory, which creates a tension that other central banks don’t have.