Tags: Money | Federal Reserve | chiefs | appointed

How Are Fed Chiefs Appointed?

By    |   Wednesday, 15 July 2015 09:45 AM

Landing the job as chair, or chief, of the Federal Reserve System is a two-step process, in which a nominee is appointed by the president of the United States to run the nation's central bank, and that nomination is then voted on by the U.S. Senate.

The president's nominee for chair (as well as vice-chair) must be one of the seven sitting governors of the Federal Reserve based in Washington, D.C., who were themselves tapped by the White House and confirmed by the Senate for 14-year terms.

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In the century-long history of the Fed, the Senate has never voted down a president's choice for Fed chair, whose job it is to steer the nation's monetary policy with an eye toward bolstering the economy, Business Insider reported.

Business Insider noted, however, that President Woodrow Wilson saw Congress reject a handful of his early picks for the inaugural Board of Governors, and that five Board of Governors nominees since the Clinton administration on through the Obama White House have either withdrawn or been rejected outright.

A Fed chair serves a four-year term and can be reappointed, but must also be reconfirmed by the Senate. William Martin is the longest-serving Fed chief, appointed by Harry Truman in 1951 and in office for four administrations until 1970. Martin is followed closely by Alan Greenspan, 1987-2006.

The current chair, Janet Yellen, became Fed chief in 2014 and is the fifteenth person to hold the position. The chair, vice chair and remaining five governors also have veto power over who is appointed president of each of the Fed's 12 regional banks. The bank president nominees are chosen by the individual banks' directors, with the board in Washington having final say.

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Landing the job as chair, or chief, of the Federal Reserve System is a two-step process, in which a nominee is appointed by the president of the United States to run the nation's central bank, and that nomination is then voted on by the U.S. Senate.
Federal Reserve, chiefs, appointed
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2015-45-15
Wednesday, 15 July 2015 09:45 AM
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