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Federal Reserve Board of Governors

The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement the monetary policy of the United States. Governors are appointed by the president of the United States and confirmed by the Senate for staggered 14-year terms.[1][2] It is headquartered in the Eccles Building on Constitution Avenue, N.W. in Washington, D.C.

Statutory description

A Board of Governors meeting in April 2019

By law, the appointments must yield a "fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country".[1][2] As stipulated in the Banking Act of 1935, the chair and vice chair of the Board are two of seven members of the Board of Governors who are appointed by the president from among the sitting governors of the Federal Reserve Banks.[1][2]

The terms of the seven members of the Board span multiple presidential and congressional terms. Once a member of the Board of Governors is appointed by the president, the members function mostly independently. Such independence is unanimously supported by major economists.[3] The Board is required to make an annual report of operations to the Speaker of the House.[4] It also supervises and regulates the operations of the Federal Reserve Banks, and the U.S. banking system in general. The Board obtains its funding from charges that it assesses on the Federal Reserve Banks, and not from the federal budget; however, since net earnings of the Federal Reserve Banks are ultimately remitted to the US Treasury,[5] and spending by the Federal Reserve System reduces the size of these remittances, the effects of this source-of-funding distinction are largely optical.

Membership is by statute limited in term, and a member who has served for a full 14-year term is not eligible for reappointment.[6] There are numerous occasions where an individual was appointed to serve the remainder of another member's uncompleted term and has been reappointed to serve a full 14-year term.[6] Since "upon the expiration of their terms of office, members of the Board shall continue to serve until their successors are appointed and have qualified",[6] a member can serve for significantly longer than a full term of 14 years. The law provides for the removal of a member of the board by the president "for cause".[6]

The chair and vice chair of the Board of Governors are appointed by the president from among the sitting Governors. They both serve a four-year term and they can be renominated as many times as the president chooses until their terms on the Board of Governors expire.[1]

All seven board members of the Federal Reserve Board of Governors and five Federal Reserve Bank presidents direct the open market operations that set U.S. monetary policy through their membership in the Federal Open Market Committee (FOMC).[7]

Records of the Federal Reserve Board of Governors are found in the Record Group n. 82 at the National Archives and Records Administration.[8]

Current members

The Federal Reserve Board of Governors in 2022

The current members of the Board of Governors are as follows:[9]

Committees

There are eight committees.[10]

List of governors

A Board of Governors meeting on January 1, 1922
Current and living former governors as of May 1, 2014

The following is a list of past and present members of the Board of Governors of the Federal Reserve System. A governor serves for a fourteen-year term after appointment and member who serves a full term may not be reappointed; when governor completes an unexpired portion of a term may be reappointed. Since the Federal Reserve was established in 1914, the following people have served as governor.[11]

Status

  Denotes a current member

Succession of seats

The Federal Reserve Board has seven seats subject to Senate confirmation, separate from a member's term as chair or vice chair.[11][12][13][14]

Structure of leadership

The chair, vice chair, and vice chair for supervision are appointed by the president from among the sitting members of the board to serve a four-year term and they can be renominated as many times as the president chooses, subject to Senate confirmation each time, until their terms on the Board of Governors expire.[11]

Unsuccessful nominations

The below table shows those who were formally nominated to fill a vacant seat but failed to be confirmed by the Senate.

In addition some have been announced but never formally nominated before being withdrawn from consideration. Alicia Munnell, representing Boston, was announced to fill LaWare's seat by Bill Clinton in 1995.[15] Felix Rohatyn (district unknown) was announced to fill Alan Blinder's as vice chair and his seat in 1996.[16] Steve Moore and Herman Cain were announced to fill Bloom Raskin and Yellen's seats (without specifying which seat or district) by Donald Trump in 2019.[17][18]

References

  1. ^ a b c d See 12 U.S.C. § 241
  2. ^ a b c Federal Reserve (January 16, 2009). "Board of Governors FAQ". Federal Reserve. Archived from the original on January 17, 2009. Retrieved 2009-01-16.
  3. ^ Federal Reserve Board of Governors – Appointments [bare URL]
  4. ^ 12 U.S.C. § 247.
  5. ^ "Federal Reserve Board - Section 7. Division of Earnings". Board of Governors of the Federal Reserve System. Retrieved 2023-05-26.
  6. ^ a b c d See 12 U.S.C. § 242.
  7. ^ "The Three Key System Entities" (PDF). Board of Governors of the Federal Reserve System.
  8. ^ Richardson, Gary (February 2006). "Records of the Federal Reserve Board of Governors in Record Group 82 at the National Archives of the United States". Financial History Review. 13: 123–134. doi:10.1017/S0968565006000084. S2CID 154320973. Archived from the original on April 21, 2018. Retrieved April 21, 2018.
  9. ^ "Federal Reserve Board - Board Members". Board of Governors of the Federal Reserve System. Retrieved 2023-09-13.
  10. ^ "About the Fed" on the Federal Reserve Board of Governors website
  11. ^ a b c "Board of Governors Members, 1914-Present". Federal Reserve Board of Governors. Retrieved April 28, 2020.
  12. ^ Smale, Pauline H. (February 9, 1985). "Board of Governors of the Federal Reserve System: History, Membership, and Current Issues" (PDF). Congressional Research Service. Retrieved April 28, 2020.
  13. ^ "List of Suggested Appointments to the Federal Reserve Board" (PDF). FRASER. Retrieved May 3, 2020.
  14. ^ Engelberg, Joseph; Henriksson, Matthew; Manela, Asaf; Williams, Jared (October 29, 2019). "The Partisanship of Financial Regulators". Social Science Research Network. SSRN 3481564.
  15. ^ "Clinton Loses A Fed Fight". Bloomberg. Retrieved 2023-05-26.
  16. ^ Haberman, Clyde (February 23, 1996). "Talent Lost to a Failure Called Politics". The New York Times. Retrieved March 1, 2008.
  17. ^ Timiraos, Nick (March 22, 2019). "Trump Offers Fed Board Position to Economic Commentator Stephen Moore". The Wall Street Journal.
  18. ^ Borak, Donna; Vazquez, Maegan (April 4, 2019). "Trump Says He's Recommending Herman Cain to Fed". CNN.
  19. ^ PN480 — Carol J. Parry — Board of Governors of the Federal Reserve System 106th Congress (1999–2000)
  20. ^ PN569 — Larry Allan Klane — Federal Reserve System, 110th Congress (2007–2008)
  21. ^ PN1726 — Peter A. Diamond — Federal Reserve System 111th Congress (2009–2010)
  22. ^ PN2121 — Peter A. Diamond — Federal Reserve System 111th Congress (2009–2010)
  23. ^ PN52 — Peter A. Diamond — Federal Reserve System 112th Congress (2011–2012)
  24. ^ PN2 — Allan R. Landon — Federal Reserve System 114th Congress (2015–2016)
  25. ^ PN3 — Allan R. Landon — Federal Reserve System 114th Congress (2015–2016)
  26. ^ PN674 — Kathryn M. Dominguez — Federal Reserve System 114th Congress (2015–2016)
  27. ^ PN1279 — Marvin Goodfriend — Federal Reserve System 115th Congress (2017–2018)
  28. ^ PN1348 — Marvin Goodfriend — Federal Reserve System 115th Congress (2017–2018)
  29. ^ PN2543 — Jean Nellie Liang — Federal Reserve System 115th Congress (2017–2018)
  30. ^ PN1422 — Judy Shelton — Federal Reserve System 116th Congress (2019–2020)
  31. ^ PN3 — Judy Shelton — Federal Reserve System 117th Congress (2021–2022)
  32. ^ PN1677 — Sarah Bloom Raskin — Federal Reserve System 117th Congress (2021–2022)
  33. ^ PN1678 — Sarah Bloom Raskin — Federal Reserve System 117th Congress (2021–2022)

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Public Domain This article incorporates public domain material from websites or documents of the National Archives and Records Administration.