The Board of Governors of the Federal Reserve System
Appointments to the Board
The seven members of the Board of Governors are appointed by the President and
confirmed by the Senate to serve 14-year terms of office. Members may serve only one
full term, but a member who has been appointed to complete an unexpired term may
be reappointed to a full term. The President designates, and the Senate confirms,
two members of the Board to be Chairman and Vice Chairman, for four-year terms.
Representation
Only one member of the Board may be selected from any one of the twelve Federal
Reserve Districts. In making appointments, the President is directed by law to select a
"fair representation of the financial, agricultural, industrial, and commercial
interests and geographical divisions of the country." These aspects of selection are intended
to ensure representation of regional interests and the interests of various sectors of
the public.
Responsibilities
The primary responsibility of the Board members is the formulation of monetary
policy. The seven Board members constitute a majority of the 12-member Federal Open
Market Committee (FOMC), the group that makes the key decisions affecting the
cost and availability of money and credit in the economy. The other five members of
the FOMC are Reserve Bank presidents, one of whom is the president of the Federal
Reserve Bank of New York. The other Bank presidents serve one-year terms on a
rotating basis. By statute the FOMC determines its own organization, and by tradition
it elects the Chairman of the Board of Governors as its Chairman and the President
of the New York Bank as its Vice Chairman.
The Board sets reserve requirements and shares the responsibility with the
Reserve Banks for discount rate policy. These two functions plus open market operations
constitute the monetary policy tools of the Federal Reserve System.
In addition to monetary policy responsibilities, the Federal Reserve Board has
supervisory and regulatory responsibilities over banks that are members of the
System, bank holding companies, international banking facilities in the United States,
Edge Act and agreement corporations, foreign activities of member banks, and the
U.S. activities of foreign-owned banks. The Board also sets margin requirements, which
limit the use of credit for purchasing or carrying securities. In addition, the Board plays
a key role in assuring the smooth functioning and continued development of
the nation's vast payments system. Another area of Board responsibility is the
development and administration of regulations that implement
major federal laws governing consumer credit such as the Truth in
Lending Act, the Equal Credit Opportunity Act, the Home Mortgage Disclosure Act and
the Truth in Savings Act.
Meetings
The Board usually meets several times a week. Meetings are conducted in compliance
with the Government in the Sunshine Act, and many meetings are open to the public.
If the Board has convened to consider confidential financial information, however,
the sessions are closed to public observation.
Contacts within Government
As they carry out their duties, members of the Board routinely confer with officials
of other government agencies, representatives of banking industry groups, officials of
the central banks of other countries, members of Congress and academicians. For
example, they meet frequently with Treasury officials and the Council of Economic
Advisers to help evaluate the economic climate and to discuss objectives for the
nation's economy. Governors also discuss the international monetary system with
central bankers of other countries and are in
close contact with the heads of the U.S. agencies that make foreign loans and conduct
foreign financial transactions.
Members of the Board
Alan Greenspan, Chairman
Designated on June 20, 1996, to a third four-year term as Chairman. He was
originally appointed in 1987 by President Reagan and is from the New York
District. His term as a Board member expires on January 31, 2006, while his current term
as Chairman expires on June 20, 2000.
Alice M. Rivlin, Vice Chair
Sworn in on June 25, 1996, for a full term that ends January 31, 2010. She was
appointed by President Clinton and is from the Philadelphia District. Her term as
Vice Chair expires on June 24, 2000.
Edward W. Kelley, Jr.
Sworn in on April 20, 1990, for a full
term that ends on January 31, 2004. Immediately preceding this appointment, he
had served as a member of the Board from May 1987, completing an unexpired term.
He was originally appointed by President Reagan and is from the Dallas District.
Laurence H. Meyer
Sworn in on June 24, 1996, to fill an unexpired term that ends on January 31,
2002. He was appointed by President Clinton and is from the St. Louis District.
Roger W. Ferguson Jr.
Sworn in on November 5, 1997, to fill an unexpired term that ends on January 31,
2000. He was appointed by President Clinton and is from the Boston District.
Edward M. Gramlich
Sworn in on November 5, 1997, to fill an unexpired term that ends on January 31,
2008. He was appointed by President Clinton and is from the Richmond District.
