Open market operations - involve the buying and selling of
government securities through the
trading desk at the federal reserve bank of new york. Selling of
government securities so it is
issued by the government. It is the most important policy tool the
fed has for controlling themoney supply to the fomc is the focal
point for setting monetary policy at the fed so it meets
eight times per year in the main building of the board of governors
in washington dc to the
purpose of the meeting is to set the target growth rate for the
money supply given past current
and expected economic conditions.