Well how about that, they spell it all out! They explain that (1) the FOMC is essentially sovereign and its decisions are made by the five regional presidents (NY and four other banks on a rotating basis) and the seven members of the Board of Governors, and (2) open market operations ("the principal tool of national monetary policy") are not officially audited by anybody.
Here is an excerpt from the FOMC minutes of 1999-Feb-2 (<http://www.bog.frb.fed.us/fomc/minutes/19990202.HTM>):
AUTHORIZATION FOR DOMESTIC OPEN MARKET OPERATIONS
Amended February 2, 1999
[condensed form (condensed by me)]:
1. The Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York
(a) To buy or sell U.S. Government securities for the System Open Market Account at market prices, and, for such Account, to exchange maturing U.S. Government securities with the Treasury or to allow them to mature without replacement; provided that the aggregate amount of securities held in such Account on the day of a meeting of the Committee at which action is taken shall not be increased or decreased by more than $12.0 billion during the period commencing on the day following such meeting and ending on the day of the next such meeting;
[unabridged form (brainbleeder - (a) is only one sentence):]
1. The Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York, to the extent necessary to carry out the most recent domestic policy directive adopted at a meeting of the Committee:
(a) To buy or sell U.S. Government securities, including securities of the Federal Financing Bank, and securities that are direct obligations of, or fully guaranteed as to principal and interest by, any agency of the United States in the open market, from or to securities dealers and foreign and international accounts maintained at the Federal Reserve Bank of New York, on a cash, regular, or deferred delivery basis, for the System Open Market Account at market prices, and, for such Account, to exchange maturing U.S. Government and Federal agency securities with the Treasury or the individual agencies or to allow them to mature without replacement; provided that the aggregate amount of U.S. Government and Federal agency securities held in such Account (including forward commitments) at the close of business on the day of a meeting of the Committee at which action is taken with respect to a domestic policy directive shall not be increased or decreased by more than $12.0 billion during the period commencing with the opening of business on the day following such meeting and ending with the close of business on the day of the next such meeting;
If I understand the above correctly, it authorizes up to $12 billion in new currency until the next action meeting. Meetings are usually about once a month, and I assume they are all action meetings.
Now, considering the importance of the twelve voting members of the FOMC in making sovereign decisions regarding the fiat money supply (to the tune of up to about $10 bil a month, apparently), it is important to know how those members are appointed. The seven from the Board of Governors are simply appointed by the President of the United States, an office now traditionally occupied by a favorite of the international bankers (for example, William Clinton has been a favorite and protégé of the Rockefellers since Winthrop Rockefeller took Clinton under his wing around 1970).
From <http://www.ny.frb.org/pihome/fedpoint/fed10.html>, "FRBNY Fedpoints 10: The Role of Reserve Bank Directors":
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