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Third Avenue
San Diego CA 92103
Phone:
619-294-7900
Fax:
619-294-6520
How the Fed Sets Interest Rates. |
The Federal
Open Market Committee (FOMC)
The 12 voting members of the FOMC
are the policymakers who make key decisions affecting the cost and availability of money and credit in the economy. The panel
sets, or sets targets for, short-term interest rates, which in turn affect interest rates paid by consumers and businesses
on loans of all types.
Every
year, the Federal Reserve rotates four of the 12 votes on its rate-setting FOMC among 11 of the 12 regional Federal Reserve Bank presidents. The 12th bank president from New York
always gets a vote as do the seven members of the Fed's Board of Governors.
The heart of the FOMC's rate-setting meetings is the "go-around," in which all the Fed governors and all the bank
presidents lay out their views of the economy and what they think should be done about rates. As with most groups, participants
say the smartest, best-prepared and most articulate speakers, whether or not they have a vote, have an enormous sway on their
colleagues.
Ben Bernanke, chairman,
goes last; a custom insiders say gives him a chance to size up the mood of the group. The seven members
of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full
term is 14 years. All are voting members of the policymaking FOMC.
Specializing
in Mortgage Loans for:
- Apartments
- CalVet Loans
- Commercial
- Condos
- Debt
Consolidation
- Education
- Home Improvements
- Industrial
- Mixed Use
- Purchases
- Refinances
- Residential
- Reverse Mortgages
- Rural Properties
- Strip
Malls
Contact us at: info@sucasamortgage.org
Su Casa Mortgage, Incorporated is licensed by the California Department of Real Estate
# 01403501
and by the Department of Corporations #C2298725.
