What Is the Federal Reserve Board (FRB)?

The Board of Governors of the Federal Reserve System, also known as the Federal Reserve Board (FRB), is the governing body of the Federal Reserve System. The FRB was established by the Banking Act of 1935. The members are statutorily tasked with giving a “fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country.”

How the Federal Reserve Board (FRB) Works

The Board of Governors of the Federal Reserve System, called the Federal Reserve Board (FRB), is a seven-member body that governs the Federal Reserve System, the U.S. central bank in charge of maintaining a stable financial system and economy by implementing monetary policy.

The 澳洲幸运5官方开奖结果体彩网:members of the U.S. Senate-confi🧸r𝄹med FRB are considered an independent agency of the federal government. The Fed has a statutory mandate to work toward maximum sustainable employment and stable prices at moderate long-term interest rates, and the FRB chair and other officials frequently testify before Congress. However, it makes monetary policy independently of the legislative or executive branches and is structured like a private corporation.

Appointments, Terms, and Roles

The president appoints the FRB’s members, and they are confirmed by the Senate. Each is appointed to a single 14-year term, but may serve shorter or longer periods. A new board member serves the remainder of the outgoing member’s term, if any. The latest member may then be reappointed to one full term.

If a replacement has not been confirmed when that term expires, they may continue to serve, so that it is possible for a member to serve for much longer than 14 years. However, the president is allowed to remove a member from the board, given sufficient cause. Terms are staggered so that a new member is appointed every two years. Once appointed, each board member operates independently.

The chair, vice chair, and vice chair for supervision of the Federal Reserve Board are appointed to four-year terms by the president from among the board’s existing members. They can be reappointed to these leadership roles as often as their board member term limits allow. 

The board of governors includes several subcommittees with their chairs and vice chairs. These are the committees on Board Affairs, consumer and community affairs, economic and monetary affairs, financial stability, Federal Reserve Bank affairs, supervision and regulation, payments, clearing, and settlement, and the subcommittee on smaller regional and community banking. 

Here is the current list of Federal Reserve Board members:

Duties of the Federal Reserve Board

The Federal Reserve Board members’ most important role is as members of the 澳洲幸运5官方开奖结果体彩网:Federal Open Mark𝔍et⭕ Committee (FOMC), which oversees the open market operations that determine the amount of money circulating. The FRB is also directly responsible for adjusting other monetary policy tools as needed, such as the discount rate, Interest on Reserve Balances, and the Overnight Reverse Repurchase facility rate.

The Board also supe☂rvises𝓰 the Fed’s 12 regional branches.

Administration of th🌱e Federal Reserve Board Officers

The Federal Reserve Board’s princ🐬ipal offices are located in the District of Columbia. At board meetings, the chairman presides, and in the chairman’s absence, the vice chairman takes over. If both the chair and vice chair are absent, the board can elect a member to act as chair pro tempore.

Funds collected through assessments on Federal Reserve banks are used to cover expenses and salaries of board members. Board members are prohibited from holding positions or stock in banks, banking institutions, or trust companies. Each board member must certify this fact under oath as part of their service.

The Bottom Line

The Federal Reserve Board is the governing body of the central banking system of the United States. Its primary mission is to control monetary policy to promote stable prices, sustainable economic growth, and full employment. The FRB uses various tools, including adjusting interest rates and conducting open market operations, to influence th💙e money supply and the broader economy.