U.S. Code » Title 12 » Chapter CHAPTER 3— FEDERAL RESERVE SYSTEM › Subchapter SUBCHAPTER IV— FEDERAL OPEN MARKET COMMITTEE

12 U.S.C. § 263

Federal Open Market Committee; creation; membership; regulations governing open-market transactions

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(a) There is hereby created a Federal Open Market Committee (hereinafter referred to as the “Committee”), which shall consist of the members of the Board of Governors of the Federal Reserve System and five representatives of the Federal Reserve banks to be selected as hereinafter provided. Such representatives shall be presidents or first vice presidents of Federal Reserve banks and, beginning with the election for the term commencing March 1, 1943, shall be elected annually as follows: One by the board of directors of the Federal Reserve Bank of New York, one by the boards of directors of the Federal Reserve Banks of Boston, Philadelphia, and Richmond, one by the boards of directors of the Federal Reserve Banks of Cleveland and Chicago, one by the boards of directors of the Federal Reserve Banks of Atlanta, Dallas, and St. Louis, and one by the boards of directors of the Federal Reserve Banks of Minneapolis, Kansas City, and San Francisco. In such elections each board of directors shall have one vote; and the details of such elections may be governed by regulations prescribed by the committee, which may be amended from time to time. An alternate to serve in the absence of each such representative shall likewise be a president or first vice president of a Federal Reserve bank and shall be elected annually in the same manner. The meetings of said Committee shall be held at Washington, District of Columbia, at least four times each year upon the call of the chairman of the Board of Governors of the Federal Reserve System or at the request of any three members of the Committee.(b) No Federal Reserve bank shall engage or decline to engage in open-market operations under sections 348a and 353 to 359 of this title except in accordance with the direction of and regulations adopted by the Committee. The Committee shall consider, adopt, and transmit to the several Federal Reserve banks, regulations relating to the open-market transactions of such banks.(c) The time, character, and volume of all purchases and sales of paper described in sections 348a and 353 to 359 of this title as eligible for open-market operations shall be governed with a view to accommodating commerce and business and with regard to their bearing upon the general credit situation of the country.(Dec. 23, 1913, ch. 6, § 12A, as added June 16, 1933, ch. 89, § 8, 48 Stat. 168; amended Aug. 23, 1935, ch. 614, title II, § 205, 49 Stat. 705; July 7, 1942, ch. 488, § 1, 56 Stat. 647.)Editorial NotesAmendments

1942—Subsec. (a). Act July 7, 1942, substituted second, third, and fourth sentences for former second and third sentences.

1935—Act Aug. 23, 1935, amended provisions relating to membership in subsec. (a), substituted “Committee” for “Federal Reserve Board” and “Board” in subsec. (b), and omitted subsec. (d).

Notes of Decisions
Cited in 31 cases (3 in the last 5 years), 1963–2026 · leading case: Donald W. Riegle, Jr., Member, U. S. Senate v. Fed. Open Mkt. Comm., 656 F.2d 873 (D.C. Cir. 1981).
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Donald W. Riegle, Jr., Member, U. S. Senate v. Fed. Open Mkt. Comm., 656 F.2d 873 (D.C. Cir. 1981). · cites it 13× “12 U.S.C. § 263 (b) (1976). The FOMC, like the System as a whole, is constituted to reflect both public and private interests.”
Fed. Open Mkt. Comm. of Fed. Reserve Sys. v. Merrill, 443 U.S. 340 (1979). · cites it 4× “12 U. S. C. § 263 (b). The FOMC [4] is charged with conducting open market operations "with a view to accommodating commerce and business and with regard to their bearing upon the general credit situation of the country.”
Melcher v. Fed. Open Mkt. Comm., 644 F. Supp. 510 (D.D.C. 1986). · cites it 7× “See 12 U.S.C. § 263 (a). 1 The adjudication of Senator Melcher’s cause has travelled a long and somewhat tortuous course, due essentially to recent changes in the state of the law in this area.”
United States v. Philadelphia Nat'l Bank, 374 U.S. 321 (1963). · cites it 2× “First, the Federal Reserve System, through its open-market operations, see 12 U. S. C. §§ 263 (c), 353-359, control of the rediscount rate, see 12 U.”
Bloomberg L.P. v. Bd. of Governors of the Fed. Reserve Sys., 649 F. Supp. 2d 262 (S.D.N.Y. 2009). · cites it 2× “See 12 U.S.C. § 263 . The FOMC is made up of the members of the Board, the president of the FRBNY, and presidents of four other FRBs, who serve on a rotating basis.”
Henry S. Reuss v. John J. Balles, 584 F.2d 461 (D.C. Cir. 1978). · cites it 3× “5 In unequivocal language, 12 U.S.C. § 263 (b) (1976) states: No Federal Reserve bank shall engage or decline to engage in open-market operations under sections 348a and 353 to 359 of this title except in accordance with the direction of and regulations adopted by the Committee.”
McKinley v. Bd. of Governors of the Fed. Reserve Sys., 647 F.3d 331 (D.C. Cir. 2011). “The Board, together with the Federal Open Market Committee — a body composed of the Board members and five presidents or first vice presidents of the Reserve Banks, 12 U.S.C. § 263 — are statutorily mandated to “maintain long run growth of the monetary and credit aggregates…”
Fasano v. Fed. Reserve Bank, 457 F.3d 274 (3rd Cir. 2006). “The presidents of the New York Fed and four other Federal Reserve Banks, along with the Board of Governors of the Federal Reserve System (“Board of Governors”), constitute the Federal Open Market Committee, 12 U.S.C. § 263 , charged by Congress with: “maintainfing] long run…”
United States v. Wells Fargo, 943 F.3d 588 (2d Cir. 2019). “See 12 U.S.C. § 263 . 7 in loans from two of the emergency lending facilities operated by the Fed: the Discount Window and the Term Auction Facility (“TAF”).”
Reuss v. Balles, 73 F.R.D. 90 (D.D.C. 1976). · cites it 4× “The Reserve Bank representatives to the FOMC are not appointed in accordance with the Appointments Clause but rather are selected by the boards of directors of the Reserve Banks pursuant to § 12A of the Federal Reserve Act, 12 U.S.C. § 263 (a). 5 Plaintiff asks the Court to…”
Fed. Reserve Bank of St. Louis, a United States Corp. v. Metrocentre Improvement Dist. 1, City of Little Rock, Arkansas, 657 F.2d 183 (8th Cir. 1981). “12 U.S.C. § 263 ; (f) It examines state chartered banks which are members of the Federal Reserve System.”
John Melcher, Honorable Member, United States Senate v. Fed. Open Mkt. Comm., 836 F.2d 561 (D.C. Cir. 1987). “12 U.S.C. § 263 (a) (1982). The five members are chosen from the presidents and first vice presidents of the various Reserve Banks, who hold their Reserve Bank offices subject to approval by the Board of Governors of the Federal Reserve System.”
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— 12 U.S.C. § 263(c) — 1 case
United States v. Mfrs. Hanover Trust Co., 240 F. Supp. 867 (S.D.N.Y. 1965).
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.