[Federal Register: February 16, 2005 (Volume 70, Number 31)]
[Notices]               
[Page 7947-7948]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16fe05-51]                         

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FEDERAL RESERVE SYSTEM

Federal Open Market Committee

[Docket No. OP-1223]

 
Rules of Organization

AGENCY: Federal Open Market Committee.

ACTION: Notice; amendment to Rules of Organization.

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SUMMARY: The Federal Open Market Committee (the ``Committee'') has 
amended its Rules of Organization to provide that the annual terms of 
Reserve Bank representatives on the Committee shall begin on the date 
of the Committee's first regularly scheduled meeting of each calendar 
year (rather than January 1 of each year). The Committee also has made 
other minor and technical amendments to its Rules of Organization to 
conform the rules to current practice and to make the rules gender-
neutral.

DATES: The amendments to the Rules of Organization became effective on 
February 2, 2005.

FOR FURTHER INFORMATION CONTACT: Kieran J. Fallon, Assistant General 
Counsel (202-452-5270), April Snyder, Attorney (202-452-3099), Legal 
Division; Board of Governors of the Federal Reserve System; or Deborah 
J. Danker, Deputy Secretary (202-452-3253), Federal Open Market 
Committee, 20th Street and Constitution Avenue, NW., Washington, DC 
20551. Users of Telecommunication Device for Deaf (TTD) only, call 
(202) 263-4869.

SUPPLEMENTARY INFORMATION: The Committee is composed of the members of 
the Board of Governors of the Federal Reserve System and five 
representatives of the Federal Reserve Banks. The Reserve Bank 
representatives on the Committee are elected annually in the manner set 
forth in section 12A of the Federal Reserve Act (12 U.S.C. 263(a)). An 
alternate also is elected annually for each Reserve Bank 
representative, and the alternate serves on the Committee in the 
absence of the relevant Reserve Bank representative.\1\ The Federal 
Reserve Act authorizes the Board to prescribe regulations governing the 
details of the elections of Reserve Bank representatives and 
alternates.\2\
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    \1\ Each Reserve Bank representative and alternate must be a 
president or first vice president of a Reserve Bank.
    \2\ See 12 U.S.C. 263(a).
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    The Committee has amended its Rules of Organization to provide that 
the annual terms of the Committee's Reserve Bank members (and 
alternates) shall begin on the date of the Committee's first regularly 
scheduled meeting of each calendar year (rather than on January 1st of 
each year). With this change, the annual terms of the Committee's 
Reserve Bank representatives (and alternates) will run from the 
Committee's first regularly scheduled meeting of a calendar year to the 
Committee's first regularly scheduled meeting of the next calendar 
year. The amendment synchronizes the terms of the Reserve Bank 
representatives (and alternates) with the terms of the Committee's 
officers and staff, who currently are elected annually at the 
Committee's first regularly scheduled meeting of each year.
    The Committee also has amended its Rules of Organization to clarify 
that the Committee's officers and staff are elected at the Committee's 
first regularly scheduled meeting of each year, and to reflect the fact 
that the Committee currently appoints only one Manager for the System 
Open Market Account. These changes conform the rules to the Committee's 
current practice. Finally, the Committee has modified sections 2(b), 
4(b), and 5 of its Rules of Organization to make the rules gender-
neutral.
    The Committee has incorporated the amendments into the Committee's 
Rules of Organization. The Committee's Rules of Organization are 
uncodified regulations for use by the Committee, issued pursuant to 5 
U.S.C. 552. Because the amendments relate solely to the internal 
organization, procedure or

[[Page 7948]]

practice of the Committee, the public notice, public comment, and 
delayed effective date provisions of the Administrative Procedure Act 
do not apply.\3\
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    \3\ See 5 U.S.C. 553(b) and (d).
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    For the reasons discussed above, the Committee has amended its 
Rules of Organization as follows:
    1. Section 2(b) of the Rules of Organization is revised to read as 
follows:

Section 2--Composition of Committee

* * * * *
    (b) Reserve Bank representatives. The representatives of the 
Federal Reserve Banks, and an alternate for each representative, are 
elected by the boards of directors of the Reserve Banks in accordance 
with section 12A of the Federal Reserve Act (12 U.S.C. 263) for annual 
terms commencing on the date of the first regularly scheduled meeting 
of the Committee occurring on or after January 1 of each year. Prior to 
the first regularly scheduled meeting of the Committee on or after 
January 1 of each year, each member of the Committee representing the 
Federal Reserve Banks shall cause a record of the member's election and 
of the election of the member's alternate to be forwarded to the 
secretary of the Committee. If any question is raised as to the 
election or eligibility of a member or alternate, the Committee 
determines such question before such member or alternate participates 
in a meeting of the Committee. In the event a member is absent from a 
meeting of the Committee, the member's alternate, in attending the 
meeting, shall have the same status as the member for whom the 
alternate is serving. If a member or alternate ceases to be a president 
or first vice president of a Reserve Bank, a successor may be chosen in 
a special election by the boards of directors of the appropriate 
Reserve Bank or Banks and such successor serves until the next annual 
election.
* * * * *
    2. The first sentence of Sec.  3 of the Rules of Organization is 
revised to read as follows:

Section 3--Chairman and Vice Chairman

    At its first regularly scheduled meeting on or after January 1 of 
each year, the Committee elects a chairman and a vice chairman from 
among its membership.* * *
    3. Paragraphs (a) and (b) of Sec.  4 of the Rules of Organization 
are revised to read as follows:

Section 4--Staff

    (a) Selection of staff officers. At its first regularly scheduled 
meeting on or after January 1 of each year, the Committee selects, from 
among the officers and employees of the Board and the Federal Reserve 
Banks, the following staff officers to serve until the first regularly 
scheduled meeting on or after January 1 of the next following year: 
secretary, deputy secretary, and one or more assistant secretaries; 
general counsel, deputy general counsel, and one or more assistant 
general counsels; economists, one or more of whom may be designated as 
senior or associate economists or given titles reflecting their areas 
of particular specialization; and such other officers as the Committee 
might wish from time to time.
    (b) Secretary and deputy and assistant secretaries. The secretary 
keeps minutes of actions and records of discussions at all meetings of 
the Committee; maintains a complete record of the actions taken by the 
Committee upon all questions of policy relating to open market 
operations; and records the votes taken in connection with the 
determination of open market policies and the reasons underlying each 
such action. The secretary has custody of such minutes and records, and 
performs such other duties as the Committee may require. In the absence 
of the secretary of the Committee, the deputy secretary or an assistant 
secretary acts as secretary pro tem.
* * * * *
    4. Section 5 of the Rules of Organization and its heading are 
revised to read as follows:

Section 5--Manager

    The Committee selects a Manager of the System Open Market Account. 
The foregoing shall be satisfactory to the Federal Reserve Bank 
selected by the Committee to execute open market transactions for such 
Account and shall serve at the pleasure of the Committee. The Manager 
keeps the Committee informed on market conditions and on transactions 
made for such Account and renders such reports as the Committee may 
specify.

    By order of the Federal Open Market Committee, February 8, 2005.
Vincent R. Reinhart,
Secretary, Federal Open Market Committee.
[FR Doc. 05-2776 Filed 2-15-05; 8:45 am]

BILLING CODE 6210-01-P