When Federal Reserve members talk, investors listen. Some Fed members understandably tend to move the stock market more than others.
Federal Reserve Structure
The Federal Reserve consists of the Board of Governors, the Federal Reserve Banks, and the Federal Open Market Committee, or FOMC. The Board of Governors is the governing body of the Federal Reserve and it is run by seven “governors” who are nominated by the U.S. president and confirmed by the Senate.
The board oversees the 12 U.S. Reserve Banks, each of which has its own bank president. The FOMC is the body of the Federal Reserve that sets monetary policy, including Fed funds, target interest rates, and quantitative easing or tightening policies. The FOMC consists of 12 voting members: all seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining 11 Reserve Bank presidents, who serve one-year terms on the FOMC on a rotating basis.
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