Can You Give The Overview Of Federal Reserve's Operations?

The Federal Reserve has at its disposal a number of policy instruments. These can affect certain intermediate targets. These instruments are intended to help achieve the ultimate objectives of a healthy economy, low inflation, rapid growth in output, and low unemployment. It is important to keep these different groups clearly distinct in our analysis.
The three major instruments of monetary policy are:

1. Open market operations means buying or selling of U.S government securities in the open market to influences the level of reserves.
2. Discount rate policy means setting the interest rate, called the discount rate, at which commercial banks and other depository institutions can borrow reserves from a regional Federal Reserve Bank.
3. Reserve requirements policy means setting and changing the legal reserve ratio requirements on deposits with banks and other financial institutions.   
        
In managing money, the Federal Reserve must keep its eye on a set of variables known as intermediate targets. These are economic variables that are intermediate in the transmission mechanism between Federal instruments and ultimate policy goals. When the Federal Reserve wants to affect its ultimate objectives, it first changes one of its instruments, such as the discount rate.