Final answer:
The Federal Open Market Committee (FOMC) regulates open market operations and consists of Board of Governors members and regional bank presidents, with the aim of influencing the federal funds rate by modifying reserve balances.
Step-by-step explanation:
The Federal Open Market Committee (FOMC) is charged with overseeing the nation's open market operations, which are a crucial tool for implementing monetary policy. The committee consists of twelve members: the seven members of the Federal Reserve's Board of Governors, the president of the New York Federal Reserve Bank, who is a permanent voting member, and four other presidents from the regional Federal Reserve Banks who serve on a rotating basis. The primary function of the FOMC is to adjust the supply of reserve balances in order to influence the federal funds rate, which is the rate at which banks lend to each other overnight. The FOMC aims to reach decisions by consensus and traditionally the chairman of the Federal Reserve has had considerable influence in forming this consensus. Meetings are held approximately every six weeks, with additional meetings if necessary, to review economic conditions and determine the appropriate stance of monetary policy.