[Federal Register Volume 70, Number 31 (Wednesday, February 16, 2005)]
[Rules and Regulations]
[Pages 7839-7841]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2775]


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FEDERAL RESERVE SYSTEM

Federal Open Market Committee

12 CFR Parts 271, 272, 281

[Rules Regarding Availability of Information; Rules of Procedure; 
Statements of Policy; Docket No. R-1222]


Amendment to Rules Regarding Availability of Information; Rules 
of Procedure; Statements of Policy

AGENCY: Federal Open Market Committee.

ACTION: Final rule.

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SUMMARY: The Federal Open Market Committee (the ``Committee'') has made 
a variety of technical and minor changes to its Rules Regarding 
Availability of Information, Rules of Procedure, and Statements of 
Policy. The amendments are designed to conform the rules and statements 
to the Committee's existing practices, facilitate the ability of 
Committee members to participate in a meeting in unusual circumstances, 
and remove obsolete provisions. The amendments also make the rules 
gender-neutral and authorize the Secretary of the Committee (with the 
concurrence of the Committee's General Counsel) to make technical 
changes to the Committee's rules, regulations, and other actions in the 
future.

DATES: The amendments are effective February 16, 2005.

FOR FURTHER INFORMATION CONTACT: Kieran J. Fallon, Assistant General 
Counsel (202-452-5270), April C. Snyder, Attorney (202-452-3099), Legal 
Division; Board of Governors of the

[[Page 7840]]

Federal Reserve System; or Deborah J. Danker, Deputy Secretary (202-
452-3253), Federal Open Market Committee, 20th Street and Constitution 
Avenue, NW., Washington, DC 20551. Users of Telecommunication Device 
for Deaf (TTD) only, call (202) 263-4869.

SUPPLEMENTARY INFORMATION:

A. Amendments to Rules of Procedure and Rules Regarding Availability of 
Information

    The Committee has amended section 272.3(a) of its Rules of 
Procedure to allow members that cannot be present at a meeting in 
person to participate in the meeting by electronic means, such as by 
videoconference arrangements, as well as by telephone conference 
arrangements. The amendment should facilitate the ability of the 
Committee to act if unusual circumstances, such as a national 
emergency, prevent the Committee or any of its members from assembling 
in Washington, DC.
    The Committee also has amended sections 272.3(d) and (e) of its 
Rules of Procedure to reflect the fact that (i) currently only a single 
Manager is selected to operate the System Open Market Account for the 
Committee; and (ii) under the Committee's new expedited procedure for 
the release of Committee minutes, the minutes of a Committee meeting 
typically will be approved prior to (rather than at) the Committee's 
next regularly scheduled meeting. In addition, the Committee has 
updated the references to its internet Web site and to the Federal 
Reserve Bulletin (which is now published on a quarterly basis) in its 
Rules Regarding Availability of Information.
    Finally, the Committee has modified sections 272.3(b) and 272.4(c) 
of its Rules of Procedure and sections 271.8(a) and (b) of its Rules 
Regarding Availability of Information to make the rules gender-neutral. 
In addition, the Committee has authorized the Secretary of the 
Committee (with the concurrence of the Committee's General Counsel) to 
make other technical, non-substantive changes (such as correcting 
spelling errors or deleting obsolete provisions) to the Committee's 
rules, regulations and other actions in the future. This delegated 
authority, which is identical to the authority that the Secretary of 
the Board has to make technical changes to the Board's rules (12 CFR 
265.5(a)(4)), is codified in a new section 272.4(d) of the Rules of 
Procedure.

B. Deletion of Outdated Statement of Policy

    In 1947, the Committee directed the Federal Reserve Banks to 
terminate, effective July 10, 1947, the policy of purchasing all 
Treasury bills offered to them at a fixed rate of \3/8\ percent per 
annum and to terminate the repurchase option privilege on Treasury 
bills. This statement, which currently is codified at 12 CFR 281.1, is 
no longer relevant to the Committee's policies or operations and has 
been deleted.
    The amendments to the Committee's Rules of Procedure and Statements 
of Policy relate solely to the Committee's internal procedure and 
practices or constitute general statements of policy. Accordingly, the 
public notice, public comment and delayed effective date provisions of 
the Administrative Procedure Act do not apply to these amendments.\1\ 
Because the amendments to the Rules Regarding Availability of 
Information are technical in nature, the Committee has determined that 
good cause exists for making these amendments effective immediately, 
and that public notice and comment on these amendments are 
impracticable, unnecessary or contrary to the public interest.\2\
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    \1\ See 5 U.S.C. 553(b) and (d).
    \2\ See 5 U.S.C. 553(b)(3)(B).
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List of Subjects

12 CFR Part 271

    Freedom of information.

12 CFR Part 272

    Administrative practice and procedure, Organization and functions 
(Government agencies).

12 CFR Part 281

    Government securities, Sunshine Act.

Authority and Issuance

0
For the reasons set out in the preamble, the Federal Open Market 
Committee amends 12 CFR parts 271, 272, and 281 as follows:

PART 271--RULES REGARDING AVAILABILITY OF INFORMATION

0
1. The authority citation for part 271 continues to read as follows:

    Authority: 5 U.S.C. 552; 12 U.S.C. 263.


0
2. The first sentence of Sec.  271.3(c) is revised to read as follows:


Sec.  271.3  Published information.

* * * * *
    (c) Other published information. From time to time, other 
information relating to open market operations of the Federal Reserve 
Banks is published in the Federal Reserve Bulletin, in the Board's 
annual report to Congress, and in announcements and statements released 
to the press. * * *
* * * * *

0
3. Section 271.4(c) is revised to read as follows:


Sec.  271.4  Records available for public inspection and copying.

* * * * *
    (c) Electronic records. Information available under this section 
that was created on or after November 1, 1996, shall also be available 
on the Board's Web site, found at http://www.federalreserve.gov.
* * * * *

0
4. In Sec.  271.8, paragraph (a) and the first sentence of paragraph 
(b) are revised to read as follows:


Sec.  271.8  Subpoenas.

    (a) Advice by person served. If any person, whether or not an 
officer or employee of the Committee, of the Board of Governors of the 
Federal Reserve System, or of a Federal Reserve Bank, has information 
of the Committee that may not be disclosed by reason of Sec.  271.7 and 
in connection therewith is served with a subpoena, order, or other 
process requiring the person's personal attendance as a witness or the 
production of documents or information upon any proceeding, the person 
should promptly inform the Secretary of the Committee of such service 
and of all relevant facts, including the documents and information 
requested and any facts that may be of assistance in determining 
whether such documents or information should be made available; and the 
person should take action at the appropriate time to inform the court 
or tribunal that issued the process, and the attorney for the party at 
whose instance the process was issued, if known, of the substance of 
this part.
    (b) Appearance by person served. Except as disclosure of the 
relevant information is authorized pursuant to this part, any person 
who has information of the Committee and is required to respond to a 
subpoena or other legal process shall attend at the time and place 
therein mentioned and decline to disclose such information or give any 
testimony with respect thereto, basing such refusal upon this part. * * 
*

PART 272--FEDERAL OPEN MARKET COMMITTEE--RULES OF PROCEDURE

0
1. The authority citation for part 272 continues to read as follows:

    Authority: 5 U.S.C. 552.

0
2. In Sec.  272.3, the last sentence of paragraph (a), paragraph (b), 
paragraph (d), and the last sentence of paragraph (e) are revised to 
read as follows:

[[Page 7841]]

Sec.  272.3  Meetings.

    (a) Place and frequency. * * * If, in the judgment of the Chairman, 
circumstances require that a meeting be called at such short notice 
that one or more members cannot be present in person, such members may 
participate in the meeting by telephone conference arrangements or by 
electronic means.
    (b) Alternates. Whenever any member of the Committee representing 
Federal Reserve banks shall find that the member will be unable to 
attend a meeting of the Committee, the member shall promptly notify the 
member's alternate and the Secretary of the Committee in writing, by 
telephone, or electronic means, and upon receipt of such notice such 
alternate shall advise the Secretary whether the alternate will attend 
such meeting.
* * * * *
    (d) Attendance at meetings. Attendance at Committee meetings is 
restricted to members and alternate members of the Committee, the 
Presidents of Federal Reserve Banks who are not at the time members or 
alternates, staff officers of the Committee, the Manager, and such 
other advisers as the Committee may invite from time to time.
    (e) Meeting agendas. * * * In general, the agendas include reports 
by the Manager on open market operations since the previous meeting, 
and ratification by the Committee of such operations; reports by 
Economists on, and Committee discussion of, the economic and financial 
situation and outlook; Committee discussion of monetary policy and 
action with respect thereto; and such other matters as may be 
considered necessary.

0
3. In Sec.  272.4, the second sentence of paragraph (c) is revised, 
paragraph (d) is redesignated as paragraph (e), and a new paragraph (d) 
is added. The revision and addition read as follows:


Sec.  272.4  Committee actions.

* * * * *
    (c) Delegations of authority. * * * Such delegations of authority 
may be made to the Chairman; to a subcommittee consisting of the 
Chairman and the Vice Chairman of the Committee and the Vice Chairman 
of the Board (or in the absence of the Chairman or of the Vice Chairman 
of the Board the members of the Board designated by the Chairman as 
alternates, and in the absence of the Vice Chairman of the Committee 
the alternate for the Vice Chairman); or to any other member or members 
of the Committee. * * *
    (d) Technical changes to Committee rules. The Secretary of the 
Committee (or the acting secretary) is authorized to make technical 
corrections, such as spelling, grammar, construction, and organization 
(including removal of obsolete provisions and references), to the 
Committee's rules, regulations, and orders and other records of 
Committee action but only with the concurrence of the Committee's 
General Counsel.
* * * * *

PART 281--STATEMENTS OF POLICY

0
1. The authority citation for part 281 is revised to read as follows:

    Authority: 12 U.S.C. 263; 5 U.S.C. 552.

0
2. Section 281.1 (Purchase of Treasury bills) is removed and Sec.  
281.2 (Policy regarding the Government in the Sunshine Act) is 
redesignated as Sec.  281.1.

    By order of the Federal Open Market Committee, February 8, 2005.
Vincent R. Reinhart,
Secretary, Federal Open Market Committee.
[FR Doc. 05-2775 Filed 2-15-05; 8:45 am]
BILLING CODE 6210-01-P