Open Market Operations

Definition: Federal Reserve purchases and sales of securities in the open market, including related operations used to manage reserves and implement monetary policy.

Example

The Federal Reserve buys securities as part of an authorized policy operation affecting financial-system reserves.

Keep the distinction clear

These are not direct purchases of homes or individual consumer mortgages. They are one part of the policy toolkit alongside administered rates and other tools.

Related terms

Monetary Policy · Discount Rate · Reserve Requirements

Keep studying

Primary and Secondary Mortgage Markets: Fannie Mae, Freddie Mac, and Ginnie Mae

References: Federal Reserve: open market operations · Federal Reserve: discount window

Pronunciation (US): OH-pun MAR-kit op-uh-RAY-shunz (capitals show stress)

Pronunciation reference: Merriam-Webster