| Board of Governors of the Federal Reserve System | The seven-member board that oversees the Federal Reserve System, including participation in both monetary policy and financial regulatory decisions.
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| Discount rate | The interest rate at which the Federal Reserve makes discount loans to commercial banks.
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| Euro area | The countries in Europe that use the euro as their common currency.
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| European Central Bank (ECB) | The central authority, located in Frankfurt, Germany, which oversees monetary policy in the common currency area.
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| European System of Central Banks (ESCB) | The European Central Bank plus the National Central Banks of all the countries in the European Union, including those that do not participate in the monetary union.
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| Eurosystem | The European Central Bank plus the National Central Banks of participating countries; together, they carry out the tasks of central banking in the euro area.
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| Executive Board of the ECB | The six-member body in Frankfurt that oversees the operation of the European Central Bank and the Eurosystem.
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| Federal funds rate | The interest rate banks charge each other for overnight loans on their excess deposits at the Fed; the interest rate targeted by the FOMC.
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| Federal Open Market Committee (FOMC) | The 12-member committee that makes monetary policy decisions in the United States. Members include the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and the presidents of four Federal Reserve Banks.
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| Federal Reserve Banks | The 12 regional banks in the Federal Reserve System.
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| Federal Reserve System | The central bank responsible for monetary policy in the United States.
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| FOMC statement | The press release that immediately follows every FOMC meeting; usually contains an announcement of the federal funds rate target, an evaluation of the current economic environment, and a statement of the risks to the economy.
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| Governing Council of the ECB | The (currently) 18-member committee that makes monetary policy in the common currency area.
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| National Central Banks (NCBs) | The central banks of the countries that belong to the European Union.
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| Policy directive | The instructions from the FOMC to the System Open Market Account manager specifying the federal funds rate target.
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| Treasury Direct | The system that allows individuals to purchase U.S. Treasury securities directly from the government without the use of a broker.
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