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Custom FOMC Statement on July 23, 2010 essay paper sample

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The Federal Open Market Committee (FOMC) is a branch of the Federal Reserve System that is responsible for the open market operations. FOMC consists of twelve members which include the "seven members of the Board of Governors of the Federal Reserve System; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis" (Federal Open Market Committee, 2010). FOMC holds eight regular meetings per year. "The Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth." (Federal Open Market Committee, 2010).

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In the latest statement issued by the FOMC, it was discussed that economic recovery and labor market is improving gradually. Furthermore, household spending is increasing. However, there is also high unemployment, slight income growth, lower housing wealth and tight credit status. Basically, the government's economy is continue to progress. Prices of energy and commodities are decreasing gradually. And that subduing inflation is not a far away task; although the pace of economic recovery is moderate.


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Federal Reserve System is doing its job to allow smooth circulation of money throughout the government and that FOMC is doing its job to excellently guide the monetary system to flow as it should be. The report is a nice depiction of how they do their jobs excellently as possible. There will be more problems to encounter but positivity of the FED will succeed. Futhermore, the statement made an excellent impact in the society because people will know that the economy is gradually recovering from the stresses of the past. The statement enables information dissemination to people which is a very good thing.

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