Places to vacation in hawaii for There are, however, other policy tools available to the Federal Reserve. As mentioned, the required-reserve ratio may alter the amount of reserves and thus the money supply. Additionally, banks may borrow directly from the Federal Reserve at the interest rate known as the discount rate. The amount of borrowing is affected by how costly it is to borrow from the Federal Reserve and, for example, a higher discount rate will reduce the amount of borrowed reserves and thus reduce the money supply. Actual monetary policy decisions in the United States are determined by the Federal Open Market Committee (FOMC). The FOMC consists of the seven members of the Board of Governors of the Federal Reserve System and five of the 12 presidents of the Federal Reserve district banks. Historically, the FOMC set the growth rate of the money supply in the 1970s and early 1980s. Places to vacation in hawaii 2016.