Does the FOMC decide the discount rate?
Here's why I don't think they do:
"The Federal Open Market Committee has decided to lower its target for the federal funds rate 50 basis points to 1-1/2 percent.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Elizabeth A. Duke; Richard W. Fisher; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Charles I. Plosser; Gary H. Stern; and Kevin M. Warsh. (10 members voting -- FOMC has 12 members in all including the Board of Governors)
In a related action, the Board of Governors unanimously approved a 50-basis-point decrease in the discount rate to 1-3/4 percent. In taking this action, the Board approved the request submitted by the Board of Directors of the Federal Reserve Bank of Boston." (7 Board of Governors plus request by 1 of the district banks)
http://www.federalreserve.gov/newsev.../20081008a.htm
The only place that says they do is here:
"The FOMC meets eight times per year to setkey interest rates, such as the discount rate, and to decide whether to increase or decrease the money supply, whichthe Feddoes through buying and sellinggovernment securities."
http://www.investopedia.com/terms/f/fomc.asp
Question About the Fed
