How the Federal Reserve sets interest rates

— -- The Federal Open Market Committee

The 12 voting members of the Federal Open Market Committee (FOMC) are the policymakers who make key decisions affecting the cost and availability of money and credit in the economy.

The panel sets, or sets targets for, short-term interest rates, which in turn affect interest rates paid by consumers and businesses on loans of all types.

Every year, the Federal Reserve rotates four of the 12 votes on its rate-setting Federal Open Market Committee among 11 of the 12 regional Federal Reserve Bank presidents.

The 12th bank president — New York — always gets a vote, as do the seven members of the Fed's Board of Governors.

Here are the members:

The Board of Governors

The seven members of the Board of Governors of the Federal Reserve System are nominated by the president and confirmed by the Senate. A full term is 14 years. All are voting members of the policymaking Federal Open Market Committee. There are several vacancies.