Which committee is primarily responsible for making policy decisions within the Federal Reserve?

The Federal Open Market Committee (FOMC) is the primary body within the Federal Reserve responsible for making key policy decisions regarding monetary policy. This committee plays a crucial role in managing the nation's money supply and interest rates, which are essential tools for controlling inflation and fostering economic growth.

The FOMC meets regularly to assess the economic conditions and to determine the appropriate stance of monetary policy. Decisions made by the FOMC regarding open market operations, such as buying or selling government securities, directly influence liquidity in the banking system and thereby impact overall economic activity. The FOMC's decisions are foundational in shaping financial conditions and guiding economic expectations among businesses and consumers alike.

The other committees mentioned do not have this specific role. For instance, the FDIC is focused on insuring deposits and overseeing bank safety and soundness, while OSHA is primarily concerned with workplace safety and health regulations. Lastly, the FAC, or Federal Advisory Council, provides advice and recommendations but does not make monetary policy decisions. This distinction reinforces the FOMC's pivotal role in the context of monetary policy within the Federal Reserve System.