Which committee is responsible for directing open-market operations for the federal government?

The Federal Open Market Committee (FOMC) plays a crucial role in the U.S. economic framework by directing open-market operations, which are vital tools used to implement monetary policy. The FOMC meets regularly to assess economic conditions and make decisions regarding the buying and selling of government securities in the open market. By adjusting the supply of money in the economy, the FOMC influences interest rates, inflation, and overall economic activity. This committee is made up of members of the Board of Governors of the Federal Reserve System and representatives from the regional Federal Reserve Banks, which ensures a balanced approach to national monetary policy.

In contrast, while the Financial Stability Oversight Council is focused on monitoring systemic risks in the financial system and the Federal Reserve Board oversees the broader functions of the Federal Reserve, neither is directly responsible for conducting open-market operations. The Monetary Policy Committee, while similar in function in other countries, does not exist in the U.S. context under that name and is not responsible for the specific functions carried out by the FOMC. Thus, the Federal Open Market Committee is indeed the correct body directing these important economic activities.