open-market operations


Also found in: Dictionary.

Open-Market Operations

The buying and selling of U.S. Treasury securities. The Federal Reserve conducts open market operations as a primary way of influencing inflation and economic growth. These securities are sold at certain interest rates as a way of controlling the money supply. See also: FOMC.

open-market operations

The purchase and sale of government securities from a primary dealer in the open market by the Federal Reserve in order to influence the money supply, credit conditions, and interest rates. For example, large purchases of securities will release funds into bank reserves which, in turn, will be used for lending. This action increases the supply of money, and, at least temporarily, pushes down interest rates. Open-market operations have significant effects on security prices. See also Federal Open Market Committee.

Open-market operations.

Open-market operations allow the Fed to implement its monetary policy and regulate the money supply.

The Federal Reserve's Open Market Committee (FOMC) regularly instructs the securities desk of the Federal Reserve Bank of New York to buy or sell government securities as part of the process of increasing or decreasing the cash available for lending.

References in periodicals archive ?
All the FOMC can do is vary open-market operations.
The central bank, which carries out regular open-market operations Tuesdays and Thursdays, has sold CNY24bn worth of bills in Tuesday's operation.
The PBOC, which carries out regular open-market operations on Tuesdays and Thursdays, did not offer any repurchase agreements on Tuesday.
People's Bank of China (PBOC), which carries out regular open-market operations on Tuesdays and Thursdays, has drained a net CNY67bn from the money market last week through its open-market operations.
People's Bank of China (PBOC), which carries out regular open-market operations on Tuesdays and Thursdays, has drained a net CNY101bn from the money market last week through its open-market operations.
The People's Bank of China, which carries out regular open-market operations on Tuesdays and Thursdays, sold CNY45bn worth of bills on Tuesday.
People's Bank of China (PBOC), which carries out regular open-market operations on Tuesdays and Thursdays, has injected a net CNY67bn into the money market through its open-market operations.
The central bank has injected CNY201bn into the money market this week through its open-market operations.
People's Bank of China (PBOC), which carries out regular open-market operations on Tuesdays and Thursdays, has injected a net CNY14bn into the money market last week through its open-market operations.
People's Bank of China, which carries out regular open-market operations on Tuesdays and Thursdays, has injected a net CNY145bn into the money market last week through its open-market operations.
The central bank, which carries out regular open market operations on Tuesdays and Thursdays, has drained a net CNY51bn from the money market through its open-market operations last week.
On Tuesday, the central bank injected 255 billion yuan into the system through its open-market operations.