Chairman of the Federal Reserve

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Chairman of the Board of Governors of the Federal Reserve System
Flag of the United States Federal Reserve.png
US-FederalReserveBoard-Seal.svg
Ben Bernanke official portrait.jpg
Incumbent
Ben Bernanke

since February 1, 2006
AppointerPresident of the United States
Inaugural holderCharles Sumner Hamlin
FormationAugust 10, 1914; 99 years ago (1914-08-10)
Salary$199,700[1] (2012)
WebsiteBios
 
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Chairman of the Board of Governors of the Federal Reserve System
Flag of the United States Federal Reserve.png
US-FederalReserveBoard-Seal.svg
Ben Bernanke official portrait.jpg
Incumbent
Ben Bernanke

since February 1, 2006
AppointerPresident of the United States
Inaugural holderCharles Sumner Hamlin
FormationAugust 10, 1914; 99 years ago (1914-08-10)
Salary$199,700[1] (2012)
WebsiteBios

The Chairman of the Board of Governors of the Federal Reserve System is the head of the central banking system of the United States. Known colloquially as "Chairman of the Fed", "Fed Chairman" or "Fed Chief". The Chairman is the "active executive officer" (see 12 U.S.C. § 242) of the Board of Governors of the Federal Reserve System.

Overview[edit]

As stipulated by the Banking Act of 1935, the President appoints the seven members of the Board of Governors; they must then be confirmed by the Senate and serve for 14 years.[2] Once appointed, Governors may not be removed from office for their policy opinions.[citation needed]

The chairman and vice-chairman are chosen by the President from among the sitting Governors for four-year terms; these appointments are also subject to Senate confirmation.[3] By law, the chairman reports twice a year to Congress on the Federal Reserve's monetary policy objectives. He or she also testifies before Congress on numerous other issues and meets periodically with the Treasury Secretary.

The current chairman is Ben Bernanke, an academic nominated by George W. Bush and sworn into office on February 1, 2006, for a term lasting until January 31, 2010. He was nominated for a second term by President Barack Obama in 2009, and was confirmed by the Senate in 2010. Bernanke's second term ends on January 31, 2014. Bernanke succeeded Alan Greenspan, who served for more than 20 years during the terms of four U.S. Presidents.

On January 6, 2014, the United States Senate confirmed the nomination of Janet Yellen to be the new chairman as of February 1, 2014. Yellen will be the first woman to hold the position.[4]

The law applicable to the Chairman and all other members of the Board provides (in part):

No member of the Board of Governors of the Federal Reserve System shall be an officer or director of any bank, banking institution, trust company, or Federal Reserve bank or hold stock in any bank, banking institution, or trust company; and before entering upon his duties as a member of the Board of Governors of the Federal Reserve System he shall certify under oath that he has complied with this requirement, and such certification shall be filed with the secretary of the Board.[5]

List of Chairmen of the Federal Reserve[edit]

The following is a list of past and present Chairmen of the Board of Governors of the Federal Reserve System. There have been a total of 14 Chairmen of the Federal Reserve,[6] who are appointed by the President of the United States.

#Chairman[7][8]Years in officePresident(s) with whom they served[9]
1Charles Hamlin-headshot.jpg Charles S. HamlinAugust 10, 1914 –
August 19, 1916
Woodrow Wilson
2William P.G. Harding-headshot.jpg William P. G. HardingAugust 10, 1916 –
August 9, 1922
Woodrow Wilson
Warren G. Harding
3Daniel R. Crissinger cropped.jpg Daniel R. CrissingerMay 1, 1923 –
September 15, 1927
Warren G. Harding
Calvin Coolidge
4Roy A. Young 2.jpg Roy A. YoungOctober 4, 1927 –
August 31, 1930
Calvin Coolidge
Herbert Hoover
5EugeneMeyer.jpg Eugene MeyerSeptember 16, 1930 –
May 10, 1933
Herbert Hoover
Franklin D. Roosevelt
6Eugene R. BlackMay 19, 1933 –
August 15, 1934
Franklin D. Roosevelt
7Marriner Eccles.jpg Marriner S. EcclesNovember 15, 1934 –
January 31, 1948[10]
Franklin D. Roosevelt
Harry S. Truman
8Thomas B. McCabeApril 15, 1948 –
March 31, 1951
Harry S. Truman
9William McChesney Martin jr.jpg William McChesney Martin, Jr.April 2, 1951 –
January 31, 1970
Harry S. Truman
Dwight D. Eisenhower
John F. Kennedy
Lyndon B. Johnson
Richard M. Nixon
10ArthurBurns USArmyPhoto 1955.jpg Arthur F. BurnsFebruary 1, 1970 –
January 31, 1978
Richard M. Nixon
Gerald R. Ford
Jimmy Carter
11Portrait of G. William Miller.jpg G. William MillerMarch 8, 1978 –
August 6, 1979
Jimmy Carter
12Paulvolcker.jpg Paul A. VolckerAugust 6, 1979 –
August 11, 1987
Jimmy Carter
Ronald W. Reagan
13Alan Greenspan color photo portrait.jpg Alan GreenspanAugust 11, 1987 –
January 31, 2006[11]
Ronald Reagan
George H.W. Bush
Bill Clinton
George W. Bush
14Ben Bernanke official portrait.jpg Ben BernankeFebruary 1, 2006 –
January 31, 2014
George W. Bush
Barack Obama
15Janet Yellen official portrait.jpg Janet YellenFebruary 3,[12] 2014 –
Barack Obama

Historical note[edit]

The Board of Governors of the Federal Reserve did not exist prior to the major reorganization of the Fed in 1935 (Banking Act of 1935). Prior to that time, the "Federal Reserve Board" (created in 1913 under the Federal Reserve Act) had a Board of Directors. The directors' salaries were significantly lower (at $12,000 when first appointed in 1914[13]) and their terms of office were much shorter prior to 1935. In effect, the Federal Reserve Board members in Washington, D.C. were significantly less powerful than the presidents of the regional Federal Reserve Banks prior to 1935.[14]

In the 1935 act, the district heads had their titles changed to "President" (e.g., "President of the Federal Reserve Bank of St. Louis"), as part of a major shift of power to Washington.

Thus, Marriner Eccles was the first actual "Chairman of the Board of Governors of the Federal Reserve Board". The others prior to 1935 were "Chairman of the Board of Directors of the Federal Reserve System", with much more circumscribed power.

See also[edit]

References[edit]

  1. ^ http://www.federalreserve.gov/faqs/about_12591.htm
  2. ^ http://www.federalreserve.gov/pubs/frseries/frseri.htm
  3. ^ Federal Reserve (January 16, 2009). "Board of Governors FAQ". Federal Reserve. Retrieved January 16, 2009. 
  4. ^ "Senate Confirms Yellen as Fed Chairwoman". New York Times. Retrieved January 6, 2014. 
  5. ^ 12 U.S.C. § 244
  6. ^ "Federal Reserve Bank Presidents". The Federal Reserve Bank of St. Louis. Retrieved December 8, 2007. 
  7. ^ "Chairmen". Membership of the Board of Governors of the Federal Reserve System, 1914-Present. The Federal Reserve Board. April 3, 2007. Retrieved December 7, 2007. 
  8. ^ Chairman were designated Governor before August 23, 1935.
  9. ^ "Fed Leadership and the 2000 Election". Financial Markets Center. February 26, 1999. Retrieved December 10, 2007. 
  10. ^ Served as Chair Pro Tempore from February 3, 1948, to April 15, 1948.
  11. ^ Served as Chair Pro Tempore from March 3, 1996, to June 20, 1996.
  12. ^ http://bloomberg.econoday.com/byshoweventfull.asp?fid=463575&cust=bloomberg-us&year=2014&lid=0&prev=/byweek.asp#top
  13. ^ "The Reserve Board Nominations". The Independent. July 20, 1914. Retrieved August 21, 2012. 
  14. ^ Meltzer, Allan H. (2003). A history of the Federal Reserve: Volume 1, 1913-1951. Chicago: University of Chicago Press. 
General

External links[edit]