Federal Reserve Board of Governors

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Federal Reserve Board of Governors

The seven-member Board of Governors is the main governing body of the Federal Reserve System. It is charged with overseeing the 12 District Reserve Banks and with helping implement national monetary policy.

Governors are appointed by the President of the United States and confirmed by the United States Senate one on January 31 of every even-numbered year, for staggered, 14-year terms.

By law, the appointments must yield a "fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country," and as stipulated in the Banking Act of 1935, the Chairman and Vice Chairman of the Board are one of seven members of the Board of Governors who are appointed by the President from among the sitting Governors.[1]

As an independent federal government agency,[2] [3] the Board of Governors does not receive funding from Congress, and 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, he or she functions mostly independently. The Board is required to make an annual report of operations to the Speaker of the U.S. House of Representatives. (USC|12|247). It also supervises and regulates the operations of the Federal Reserve Banks, and US banking system in general.

Membership is generally limited to one term. However, if someone is appointed to serve the remainder of another member's uncompleted term, he or she may be reappointed to serve an additional 14-year term. (USC 12-242)

Conversely, a governor may serve the remainder of another governor's term even after he or she has completed a full term. The law provides for the removal of a member of the Board by the President "for cause." (USC 12|242)

The current members of the Board of Governors are:

  • Ben Bernanke, Chairman
  • Donald Kohn, Vice-Chairman
  • Kevin Warsh
  • Elizabeth Duke
  • Daniel Tarullo
  • Vacancy*
  • Vacancy*
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