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Federal Reserve Act 
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority.)

The Federal Reserve Act provides that no Federal Reserve bank shall engage or decline to engage in open market operations except in accordance with the direction of and regulations adopted by the committee; and that the committee shall consider, adopt, and transmit to the several Federal Reserve banks regulations relating to open market transactions.

The act also provides that the time, character, and volume of all purchases and sales of paper described in Section 14 of the Federal Reserve Act as media 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.  The board of governors is further directed by the act to keep a complete record of the actions taken by the open market committee upon all questions of policy relating to open market operations, including a record of votes taken in deciding policies and the reasons underlying the actions of the committee in each instance.  This record is published periodically in the Federal Reserve Bulletin, and is included in the annual report of the board of governors to Congress.


FEDERAL RESERVE SYSTEM, Purposes & Functions.

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