Let’s cover a few pieces of knowledge related to the Federal Reserve, starting with the similarities and differences among the Federal Reserve, the Federal Reserve Board, and the FOMC.
First, let me explain a concept that I often confuse as well.
The Federal Reserve is the entire U.S. central banking system, which includes the Federal Reserve Board in Washington, D.C., as well as 12 regional Federal Reserve banks.
The FOMC is not a third institution placed alongside the other two. Instead, it is a monetary policy committee that spans across them.
The FOMC has 12 voting seats: 7 come from the Federal Reserve Board. The President of the New York Fed holds a permanent seat, and the other 4 seats are filled in rotation by the presidents of the 11 regional Fed banks outside of New York.
As for William—who frequently appears in the media and delivers remarks—he is the President of the New York Fed. According to Federal Reserve rules, he also serves as the Vice Chair of the FOMC and has a permanent voting right.
The key reason the New York Fed president can serve as the FOMC vice chair and vote permanently is that the New York Fed is responsible for executing open market operations, directly linking Treasury securities, reserves, and the U.S. dollar money markets.
Put simply: New York is the closest place to the dollar, and the New York Fed president is the one responsible for implementing the FOMC’s monetary policy. His special status comes from his execution role.
That’s why Williams’s recent somewhat dovish, wait-and-see comments have had a significant impact on the market. They really do weaken the certainty that there will definitely be a rate hike in September.
So, for $BTC , Williams’s remarks can be considered a positive development.
First, let me explain a concept that I often confuse as well.
The Federal Reserve is the entire U.S. central banking system, which includes the Federal Reserve Board in Washington, D.C., as well as 12 regional Federal Reserve banks.
The FOMC is not a third institution placed alongside the other two. Instead, it is a monetary policy committee that spans across them.
The FOMC has 12 voting seats: 7 come from the Federal Reserve Board. The President of the New York Fed holds a permanent seat, and the other 4 seats are filled in rotation by the presidents of the 11 regional Fed banks outside of New York.
As for William—who frequently appears in the media and delivers remarks—he is the President of the New York Fed. According to Federal Reserve rules, he also serves as the Vice Chair of the FOMC and has a permanent voting right.
The key reason the New York Fed president can serve as the FOMC vice chair and vote permanently is that the New York Fed is responsible for executing open market operations, directly linking Treasury securities, reserves, and the U.S. dollar money markets.
Put simply: New York is the closest place to the dollar, and the New York Fed president is the one responsible for implementing the FOMC’s monetary policy. His special status comes from his execution role.
That’s why Williams’s recent somewhat dovish, wait-and-see comments have had a significant impact on the market. They really do weaken the certainty that there will definitely be a rate hike in September.
So, for $BTC , Williams’s remarks can be considered a positive development.