Who are the members of the Federal Reserve Board, and how are they selected? (2024)

FAQs

Who are the members of the Federal Reserve Board, and how are they selected? ›

The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years. One term begins every two years, on February 1 of even-numbered years. A member who serves a full term may not be reappointed.

Board of Governors of the Federal Reserve System

The Board of Governors--located in Washington, D.C.--is the governing body of the Federal Reserve System. It is run by seven members, or "governors," who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate.

Short Answer

The president selects the chairperson of the Federal Reserve System. The Board of Governors takes decisions and guides the 12 Federal Reserve Banks to implement the decisions. The purpose of the FOMC is to help the Board of Governors implement the monetary policy.

The process for selecting a Federal Reserve Bank president is set forth in the Federal Reserve Act. Subject to the approval of the Federal Reserve Board of Governors, the president is appointed by the Reserve Bank's Class B and C directors (those directors who are not affiliated with a supervised entity).

Once appointed, Governors may not be removed from office for their policy views. The lengthy terms and staggered appointments are intended to contribute to the insulation of the Board--and the Federal Reserve System as a whole--from day-to-day political pressures to which it might otherwise be subject.

The Board of Governors, an agency of the federal government that reports to and is directly accountable to Congress, provides general guidance for the System and oversees the 12 Reserve Banks.

How is the chairperson of the Federal Reserve System selected? The members of the Board of Governors of the Federal Reserve are selected by the U.S. president and confirmed by the Senate. The seven board members have long terms—14 years—and staggered so that one member is replaced every 2 years.

Federal Reserve Board - Jerome H. Powell, Chair.

How the Fed Helps the Economy. The Federal Reserve acts as the U.S. central bank, and in that role performs three primary functions: maintaining an effective, reliable payment system; supervising and regulating bank operations; and establishing monetary policies.

How is the Fed chair appointed? ›

By law, the president nominates a Fed chair and two vice chairs for four-year terms. They must be confirmed by the Senate for those positions in a vote distinct from their confirmation as members of the Fed Board of Governors. Jerome Powell was confirmed for a second four-year term as chair on May 12, 2022.

Federal Reserve Banks' stock is owned by banks, never by individuals. Federal law requires national banks to be members of the Federal Reserve System and to own a specified amount of the stock of the Reserve Bank in the Federal Reserve district where they are located.

Presidents have the ability to influence the Fed through their appointments, but that authority can be limited because of the checks and balances built into the central-bank system.

The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years. One term begins every two years, on February 1 of even-numbered years.

President Biden Announces Nominees to the Federal Reserve Board of Governors. Today, President Biden announced his nomination of Dr. Philip Jefferson for Vice Chair and Dr. Adriana Kugler to serve as a Member on the Board of Governors of the Federal Reserve System.

Federal Reserve Membership

More than one-third of U.S. commercial banks are members of the Federal Reserve System. National banks must be members; state chartered banks may join by meeting certain requirements.

Members of the Federal Reserve's Board of Governors, including the chair of the Federal Reserve System, are government employees whose pay is set by Congress. Members of the Federal Reserve's Board of Governors, including the chair of the Federal Reserve System, are government employees whose pay is set by Congress.

Incumbent

Washington, D.C. The chairman serves a four-year term after being nominated by the president of the United States and confirmed by the United States Senate; the officeholder serves concurrently as member of the Board of Governors.

The Reserve Banks are decentralized by design and are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.