How are the Chairman and members of the Federal Reserve Board of Governors selected, and what is the term of office?
The seven members of the Board of Governors are nominated
by the President of the United States and confirmed by the
U.S. Senate. By law, the appointments must yield a
"fair representation of the financial, agricultural,
industrial, and commercial interests and geographical
divisions of the country," and no two Governors may
come from the same Federal Reserve District.
The full term of a Governor is fourteen years;
appointments
are staggered so that one term expires on January 31 of
each even-numbered year. A Governor who has served a full
term may not be reappointed, but a Governor who was
appointed to complete an unexpired term may be reappointed
to a full fourteen-year term.
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. If all Governors serve full terms,
a
President would be able to appoint only two Governors
during a four-year presidential term. Moreover, even a
President reelected for a second term would not have
appointed a majority of the Governors until late in the
second term. In reality, many Governors do not complete
their fourteen-year terms, and recent Presidents have
averaged more than one appointment to the Board every two
years.
As stipulated in the Banking Act of 1935, the Chairman and
Vice Chairman of the Board are chosen by the President
from
among the sitting Governors and must be confirmed by the
Senate. They serve terms of four years and may be
reappointed as Chairman or Vice Chairman until their terms
as Governors expire. The Chairman serves as public
spokesperson and representative of the Board and manager
of
the Board's staff and presides at Board meetings.
Affirming the apolitical nature of the Board, recent
Presidents representing both major political parties have
selected the same person as Board Chairman.
What are the salaries of the Board members?
Congress sets the salaries of the Board members. Salary
information may be found on the Board's public website.
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What is the relationship of the Board of Governors to the Federal Reserve Banks?
In public debate prior to passage of the Federal Reserve
Act, some private-sector bankers expressed concern that a
central bank governed by a Board of Governors appointed
by the government would not be sufficiently responsive to
the needs of the financial community. Certain agrarian
interests, on the other hand, felt that an independent
central bank would yield too much control over monetary
affairs to the private banks. As a result, the Federal
Reserve System was structured with two levels of authority-
-the Board of Governors, located in Washington, D.C., has
a centralized and supervisory public influence over the
Reserve Banks, while the individual Reserve Banks maintain
narrower control over their own day-to-day operations.
How can I request to have a Board member speak at an event?
Write directly to the Board member, addressing him or her
as "The Honorable." Because the Board receives many
requests, please allow at least ten business days for a
response. Requests may be faxed to 202-452-3819 or mailed
to the following address: Federal Reserve Board, 20th
Street and Constitution Avenue, NW, Washington, DC 20551
How can I send comments, suggestions, or requests to a Board member by e-mail?
Because of the many requests and suggestions received from
the public, we cannot provide the individual e-mail
addresses of the Board members.
Is it legal for Board employees to own stock or to trade in the market?
Yes, generally, Board employees, and their spouses and
minor children, are allowed to own or trade stock, except
the stock of depository institutions or affiliates of such
institutions. Also, employees who have ongoing access to
the most sensitive Federal Open Market Committee
information, and their spouses and minor children, may not
own stock in primary government securities dealers or
their affiliates, and they are restricted as to when they
may buy and sell securities
Where can I find a list of all of the governors of the
Federal Reserve Board since 1913?
This information can be found on the Web site of the Board
of Governors at this link:
http://www.federalreserve.gov/bios/boardmembership.htm
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Who is the current chairman of the Federal Reserve Board?
Ben Bernanke is the current chairman of the Board of
Governors of the Federal Reserve System. Chairman Bernanke
was sworn in as a member of the Board and as Chairman on
February 1, 2006. He was appointed as a member of the Board
to a full 14-year term, which expires January 31, 2020, and
to a four-year term as Chairman, which expires January 31, 2010.
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