Definitions for "Open market operations"
Keywords:  fomc, reserve, york, economy, influence
Federal Reserve security transactions that have the effect of expanding and contracting the United States money supply and adjusting market interest rates.
Central Bank operations in the markets to influence exchange and interest rates.
Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserved into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.
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