Federal Open Market Committee; Rules of Procedure, 19981 [2013-07605]

Agencies

• FEDERAL RESERVE SYSTEM

[Federal Register Volume 78, Number 64 (Wednesday, April 3, 2013)]
[Rules and Regulations]
[Page 19981]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-07605]



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Federal Register / Vol. 78, No. 64 / Wednesday, April 3, 2013 / Rules 
and Regulations

[[Page 19981]]



FEDERAL RESERVE SYSTEM

12 CFR Part 272


Federal Open Market Committee; Rules of Procedure

AGENCY: Federal Open Market Committee, Federal Reserve System.

ACTION: Final rule.

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SUMMARY: The Federal Open Market Committee is amending its Rules of 
Procedure to require that at least one of the seven members 
constituting a quorum of the Committee represent a Federal Reserve 
Bank.

DATES: Effective Date: April 3, 2013.

FOR FURTHER INFORMATION CONTACT: Alicia S. Foster, Senior Special 
Counsel (202-452-5289), Legal Division, Board of Governors of the 
Federal Reserve System; or Deborah J. Danker, Deputy Director (202-452-
3253), Federal Open Market Committee, 20th and C Streets, NW., 
Washington, DC 20551. For users of Telecommunication Device for the 
Deaf (TDD) only, contact 202-263-4869.

SUPPLEMENTARY INFORMATION: The Federal Open Market Committee 
(Committee) is composed of the members of the Board of Governors of the 
Federal Reserve System (Board) and five representatives of the Federal 
Reserve Banks elected in the manner provided in the Federal Reserve 
Act.\1\ Because the Board has an authorized membership of seven 
Governors, the Committee has a maximum authorized membership of twelve 
members (seven Board members and five Federal Reserve Bank 
representatives).
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    \1\ See 12 U.S.C. 263(a). Pursuant to the Act, the Federal 
Reserve Banks also elect an alternate for each primary Federal 
Reserve Bank representative on the Committee. Each alternate is 
authorized to serve on the Committee in the absence of the relevant 
primary representative. Each primary and alternate Federal Reserve 
Bank representative on the Committee must be a President or First 
Vice President of a Federal Reserve Bank. Id.
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    While the Act does not define a quorum of the Committee, the 
Committee's rule, 12 CFR 272.3(c), defines a quorum of the Committee 
for purposes of transacting business as seven of the members of the 
Committee unless fewer than seven members are in office in which case 
the number of members then in office constitutes a quorum. The rule 
does not address the composition of the seven-member quorum. Thus, 
under the current rule, it is possible that the seven-member quorum may 
not include a member that represents a Federal Reserve Bank. Under the 
Committee's amended rule, at least one of the seven members 
constituting the seven-member quorum of the Committee must represent a 
Federal Reserve Bank.
    The Committee believes that the revised quorum rule ensures that, 
under the normal operating environment when at least seven members are 
in office, the Committee's representation includes both Board and 
Federal Reserve Banks members. This change aligns the rule with the 
practice of the Committee. The representation requirement does not 
apply outside the normal operating environment when there are fewer 
than seven members in office.
    The amended rule relates solely to the internal procedure of the 
Committee. Accordingly, the public notice, public comment, and delayed 
effective date provisions of the Administrative Procedure Act do not 
apply to the amended rule. See 5 U.S.C. 553(b) and (d). Because public 
notice and comment is not required, the Regulatory Flexibility Act, 5 
U.S.C. 601 et seq., also does not apply to the amended rule.

List of Subjects in 12 CFR Part 272

    Administrative practice and procedure, Organizations and functions 
(Government agencies).

Authority and Issuance

    For the reasons set out in the preamble, the Federal Open Market 
Committee amends 12 CFR part 272 to read as follows:

PART 272--RULES OF PROCEDURE

0
1. The authority citation for part 272 continues to read as follows:

    Authority: 5 U.S.C. 552.


0
2. Section 272.3(c) is revised to read as follows:


Sec.  272.3  Meetings.

* * * * *
    (c) Quorum. Seven members, at least one of whom represents a 
Federal Reserve Bank, constitute a quorum of the Committee for purposes 
of transacting business except that, if there are fewer than seven 
members in office, then the number of members in office constitute a 
quorum. For purposes of this paragraph (c), members of the Committee 
include alternates acting in the absence of members. Less than a quorum 
may adjourn a meeting of the Committee from time to time until a quorum 
is in attendance.
* * * * *

    By order of the Federal Open Market Committee, March 26, 2013.
William B. English,
Secretary, Federal Open Market Committee.
[FR Doc. 2013-07605 Filed 4-2-13; 8:45 am]
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