16 With that experience in mind, the 1935 Banking Act modified the distribution of power within the Federal Reserve System, giving the Board of Governors 7 of the 12 seats on the Federal Open Market Committee (FOMC) (figure 10). 17 The other 5 seats are held by the Reserve Banks.
The new framework can be said to ensure transparency as well as timeliness and flexibility in two senses. First, disclosing the Bank's thinking concerning medium- to long-term price stability has enhanced the transparency of its policy conduct, making it possible to conduct short-term monetary policy with increased flexibility.