What Is the Federal Open Market Committee (FOMC)? How Does It Work?
The central bank of the United States is known as the Federal Reserve. While it operates independently of the federal government and has no political affiliation, it may be one of the most powerful committees in the world. The Federal Reserve, or the Fed, as it’s known for short, is responsible for ensuring a strong American economy and healthy levels of employment by managing fiscal policies.
Most people know the Fed as being synonymous with interest rates—particularly when they go up. But it does so much more than that.
There are three main things the Fed is responsible for:
Bank reserve requirements and interest rates are maintained by the Fed’s Board of Governors. Open market operations are overseen by its Federal Open Market Committee (FOMC).
How Is the Fed Structured?
The Fed is composed of three parts:
A Board of Governors, helmed by a Fed Chair
12 Federal Reserve Banks, which represent a different geographic area of the U.S.
The Federal Open Market Committee (FOMC)
Who Serves on the Federal Open Market Committee? What Do They Do?
The FOMC’s role in overseeing open market operations includes providing regular economic updates to the public and managing monetary policy.
The FOMC is made up of a dozen members:
The 7 members of the Board of Governors, including the Fed Chair
The President of the Federal Reserve Bank of New York, who is also the Vice President of the Fed
4 Federal Reserve Bank members, who serve a one-year term on a rotating basis, with representation from each of the following groups:
i) Boston, Philadelphia, and Richmond
ii) Cleveland and Chicago
iii) Atlanta, St. Louis, and Dallas
iv) Minneapolis, Kansas City, and San Francisco
When Does the FOMC Meet? When Is the Next FOMC Meeting?
The FOMC meets eight times per year. The rest of its 2022 meetings are:
May 3–4, 2022
June 14–15, 2022
July 26–27, 2022
September 20–21, 2022
November 1–2, 2022
December 13–14, 2022
To find out when its 2023 meetings will be scheduled, visit the FOMC’s calendar page.
Who Currently Serves on the FOMC?
Since 2018, Jerome “Jay” Powell has served as the Chair of the Federal Reserve. Fed Chairs serve four-year terms, although Powell was recently re-appointed and confirmed for a second term, which will expire in 2028.
The rest of the current FOMC members are:
John C. Williams, New York, Vice Chair
Michelle W. Bowman, Board of Governors
Lael Brainard, Board of Governors
James Bullard, St. Louis
Esther L. George, Kansas City
Loretta J. Mester, Cleveland
Christopher J. Waller, Board of Governors
What Is the Main Thing the FOMC Decides?
The FOMC monitors the U.S. economy nonstop. Every six weeks at its FOMC meeting, it presents its outlook and adjusts interest rates accordingly. However, these are not the interest rates people use when taking out a car loan or a mortgage—those rates follow the prime rate, which is set by their banks.
Rather, the FOMC sets the fed funds rate, which is a target rate of interest that banks use to lend money to each other. The Fed may raise or lower the fed funds rate as a way to encourage lending, curb inflation, or generally ensure a strong and healthy economy.
What Are FOMC Minutes? When Are They Released?
On the final day of the FOMC meeting, the Fed publishes a short policy statement. Three weeks later, it publishes a full set of meeting minutes. These records are publicly available and can be accessed via the FOMC's minutes archive.
How Does the FOMC Increase the Monetary Supply?
When the Fed lowers the reserve requirement for a bank, it effectively creates more liquidity in the financial markets, thus increasing the monetary supply. Its Treasury security buybacks also increase reserves, putting more cash back into circulation. After the 2007-2008 Financial Crisis, the FOMC began a series of quantitative easing measures, designed to keep interest rates low and help spur growth. These measures were kept in place through 2015, but after the COVID-19 pandemic caused the economy to briefly tailspin into a recession, the Fed once again began buying back Treasuries from March-June 2020, although critics contend these actions also helped spur inflation.
What Is the FOMC’s Inflation Forecast?
TheStreet’s Dan Weil believes that while Russia’s invasion of Ukraine will increase commodity prices, it wouldn't deter the Fed from raising interest rates at its March FOMC meeting.
In this specific predicament, U.S. officials have to choose a strategy to deliver the aid without the perception of benefiting Hamas, a group the U.S. and Israel both classify as a terrorist organization.
When aiding people in war zones, you can’t just send money, a development strategy called “cash transfers” that has become increasingly popular due to its efficiency. Sending money can boost the supply of locally produced goods and services and help people on the ground pay for what they need most. But injecting cash into an economy so completely cut off from the world would only stoke inflation.
So the aid must consist of goods that have to be brought into Gaza, and services provided by people working as part of an aid mission. Humanitarian aid can include food and water; health, sanitation and hygiene supplies and services; and tents and other materials for shelter and settlement.
Due to the closure of the border with Israel, aid can arrive in Gaza only via the Rafah crossing on the Egyptian border.
The U.S. Agency for International Development, or USAID, will likely turn to its longtime partner on the ground, the United Nations Relief and Works Agency, or UNRWA, to serve as supply depots and distribute goods. That agency, originally founded in 1949 as a temporary measure until a two-state solution could be found, serves in effect as a parallel yet unelected government for Palestinian refugees.
USAID will likely want to tap into UNRWA’s network of 284 schools – many of which are now transformed into humanitarian shelters housing two-thirds of the estimated 1 million people displaced by Israeli airstrikes – and 22 hospitals to expedite distribution.
Since Biden took office, total yearly U.S. assistance for the Palestinian territories has totaled around $150 million, restored from just $8 million in 2020 under the Trump administration. During the Obama administration, however, the U.S. was providing more aid to the territories than it is now, with $1 billion disbursed in the 2013 fiscal year.
The United Nations Relief and Works Agency is a U.N. organization. It’s not run by Hamas, unlike, for instance, the Gaza Ministry of Health. However, Hamas has frequently undermined UNRWA’s efforts and diverted international aid for military purposes.
Humanitarian aid professionals regularly have to contend with these trade-offs when deciding to what extent they can work with governments and local authorities that commit violent acts. They need to do so in exchange for the access required to help civilians under their control.
Similarly, Biden has had to make concessions to Israel while brokering for the freedom to send humanitarian aid to Gaza. For example, he has assured Israel that if any of the aid is diverted by Hamas, the operation will cease.
This promise may have been politically necessary. But if Biden already believes Hamas to be uncaring about civilian welfare, he may not expect the group to refrain from taking what they can.
Security best practices
What can be done to protect the security of humanitarian aid operations that take place in the midst of dangerous conflicts?
Under International Humanitarian Law, local authorities have the primary responsibility for ensuring the delivery of aid – even when they aren’t carrying out that task. To increase the chances that the local authorities will not attack them, aid groups can give “humanitarian notification” and voluntarily alert the local government as to where they will be operating.
Under the current agreement between the U.S., Israel and Egypt, the convoy will raise the U.N. flag. International inspectors will make sure no weapons are on board the vehicles before crossing over from Arish, Egypt, to Rafah, a city located on the Gaza Strip’s border with Egypt.
The aid convoy will likely cross without militarized security. This puts it at some danger of diversion once inside Gaza. But whether the aid convoy is attacked, seized or left alone, the Biden administration will have demonstrated its willingness to attempt a humanitarian relief operation. In this sense, a relatively small first convoy bearing water, medical supplies and food, among other items, serves as a test balloon for a sustained operation to follow soon after.
In that case, the presence of U.S. armed forces might provoke attacks on Gaza-bound aid convoys by Hamas and Islamic jihad fighters that otherwise would not have occurred. Combined with the mobilization of two U.S. Navy carrier groups in the eastern Mediterranean Sea, I’d be concerned that such a move might also stoke regional anger. It would undermine the Biden administration’s attempts to cool the situation.
On U.N.-approved missions, aid delivery may be secured by third-party peacekeepers – meaning, in this case, personnel who are neither Israeli nor Palestinian – with the U.N. Security Council’s blessing. In this case, tragically, it’s unlikely that such a resolution could conceivably pass such a vote, much less quickly enough to make a difference.
Topher L. McDougal does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
“The majority of wound infections often manifest themselves immediately postoperatively, so close followup should take place […]”
Credit: 2023 Barbarewicz et al.
“The majority of wound infections often manifest themselves immediately postoperatively, so close followup should take place […]”
BUFFALO, NY- October 20, 2023 – A new research perspective was published in Oncoscience (Volume 10) on October 4, 2023, entitled, “Diagnosis and management of postoperative wound infections in the head and neck region.”
In everyday clinical practice at a department for oral and maxillofacial surgery, a large number of surgical procedures in the head and neck region take place under both outpatient and inpatient conditions. The basis of every surgical intervention is the patient’s consent to the respective procedure. Particular attention is drawn to the general and operation-specific risks.
Particularly in the case of soft tissue procedures in the facial region, bleeding, secondary bleeding, scarring and infection of the surgical area are among the most common complications/risks, depending on the respective procedure. In their new perspective, researchers Filip Barbarewicz, Kai-Olaf Henkel and Florian Dudde from Army Hospital Hamburg in Germany discuss the diagnosis and management of postoperative infections in the head and neck region.
“In order to minimize the wound infections/surgical site infections, aseptic operating conditions with maximum sterility are required.”
Furthermore, depending on the extent of the surgical procedure and the patient‘s previous illnesses, peri- and/or postoperative antibiotics should be considered in order to avoid postoperative surgical site infection. Abscesses, cellulitis, phlegmone and (depending on the location of the procedure) empyema are among the most common postoperative infections in the respective surgical area. The main pathogens of these infections are staphylococci, although mixed (germ) patterns are also possible.
“Risk factors for the development of a postoperative surgical site infection include, in particular, increased age, smoking, multiple comorbidities and/or systemic diseases (e.g., diabetes mellitus type II) as well as congenital and/ or acquired immune deficiency [10, 11].”
Continue reading the paper: DOI:https://doi.org/10.18632/oncoscience.589
Correspondence to: Florian Dudde
Keywords: surgical site infection, head and neck surgery
Oncoscience is a peer-reviewed, open-access, traditional journal covering the rapidly growing field of cancer research, especially emergent topics not currently covered by other journals. This journal has a special mission: Freeing oncology from publication cost. It is free for the readers and the authors.
To learn more about Oncoscience, visit Oncoscience.us and connect with us on social media:
G77 Nations, China, Push Back On U.S. "Loss And Damage" Climate Fund In Days Leading Up To UN Summit
As was the case in primary school with bringing in presents, make sure you bring enough for the rest of the class, otherwise people get ornery...
This age old rule looks like it could be rearing its head in the days leading up to the UN COP 28 climate summit, set to take place in the United Arab Emirates in about six weeks.
At the prior UN COP 27, which took place in Egypt last year, the U.S. pushed an idea for a new World Bank "loss and damage" climate slush fund to help poor countries with climate change. But the G77 nations plus China, including many developing countries, are pushing back on the idea, according to a new report from the Financial Times.
The goal was to arrange how the fund would operate and where the money would come from for the "particularly vulnerable" nations who would have access to it prior to the upcoming summit in UAE.
But as FT notes, Pedro Luis Pedroso Cuesta, the Cuban chair of the G77 plus China group, has said that talks about these details were instead "deadlocked" over issues of - you guessed it - where the money is going and the governance of the fund.
The U.S.'s proposal for the fund to be governed by the World Bank has been rejected by the G77 after "extensive" discussions, the report says. Cuesta has said that the nations seek to have the fund managed elsewhere, but that the U.S. wasn't open to such arrangements.
Cuesta said: “We have been confronted with an elephant in the room, and that elephant is the US. We have been faced with a very closed position that it is [the World Bank] or nothing.”
Christina Chan, a senior adviser to US climate envoy John Kerry, responded: “We have been working diligently at every turn to address concerns, problem-solve, and find landing zones.” She said the U.S. has been "clear and consistent" in their messaging on the need for the fund.
Cuesta contends that the World Bank, known for lending to less affluent nations, lacks a "climate culture" and often delays decision-making, hindering quick responses to climate emergencies like Pakistan's recent severe flooding.
The G77 coalition voiced concerns about the World Bank's legal framework potentially limiting the fund's ability to accept diverse funding sources like philanthropic donations or to access capital markets.
With just days left before the UN COP 28 summit, the World Bank insists that combating climate change is integral to its mission and vows to collaborate on structuring the fund.