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Board of Governors of the Federal Reserve System
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Federal Reserve Board of Governors

Open Market Operations


Open market operations (OMOs)--the purchase and sale of securities in the open market by a central bank--are a key tool used by the Federal Reserve in the implementation of monetary policy. The short-term objective for open market operations is specified by the Federal Open Market Committee (FOMC). Historically, the Federal Reserve has used OMOs to adjust the supply of reserve balances so as to keep the federal funds rate--the interest rate at which depository institutions lend reserve balances to other depository institutions overnight--around the target established by the FOMC.

The Federal Reserve's approach to the implementation of monetary policy has evolved considerably since the financial crisis, and particularly so since late 2008 when the FOMC established a near-zero target range for the federal funds rate. Since the end of 2008, the Federal Reserve has greatly expanded its holding of longer-term securities through open market purchases with the goal of putting downward pressure on longer-term interest rates and thus supporting economic activity and job creation by making financial conditions more accommodative.

For additional information, see: http://www.federalreserve.gov/monetarypolicy/bst_openmarketops.htm

The Federal Reserve Bank of New York publishes a detailed explanation of OMOs each year in its Annual Report Leaving the Board. For a description of open market operations during the 1990s, see the article in the Federal Reserve Bulletin (102 KB PDF).

 

Intended federal funds rate, Change (basis points) and Level

 

2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 |  2004 | 2003 | Historical Archive

 

2012

Date Increase Decrease Level (%)
2012 ... 0 0-0.25

 

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2011

Date Increase Decrease Level (%)
2011 ... 0 0-0.25

  

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2010

Date Increase Decrease Level (%)
2010 ... 0 0-0.25

 

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2009

Date Increase Decrease Level (%)
2009 ... 0 0-0.25

 

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2008

Date Increase Decrease Level (%)
December 16 ... 75-100 0-0.25
October 29 ... 50 1.00
October 8 ... 50 1.50
April 30 ... 25 2.00
March 18 ... 75 2.25
January 30 ... 50 3.00
January 22 ... 75 3.50

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2007

Date Increase Decrease Level (%)
December 11 ... 25 4.25
October 31 ... 25 4.50
September 18 ... 50 4.75

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2006

Date Increase Decrease Level (%)
June 29 25 ... 5.25
May 10 25 ... 5.00
March 28 25 ... 4.75
January 31 25 ... 4.50

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2005

Date Increase Decrease Level (%)
December 13 25 ... 4.25
November 1 25 ... 4.00
September 20 25 ... 3.75
August 9 25 ... 3.50
June 30 25 ... 3.25
May 3 25 ... 3.00
March 22 25 ... 2.75
February 2 25 ... 2.50

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2004

Date Increase Decrease Level (%)
December 14 25 ... 2.25
November 10 25 ... 2.00
September 21 25 ... 1.75
August 10 25 ... 1.50
June 30 25 ... 1.25

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2003

Date Increase Decrease Level (%)
June 25 ... 25 1.00

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Basis points: 1/100 percentage point Return to Text

Last update: February 6, 2013