Banking and Finance Law Daily Wrap Up, FEDERAL RESERVE SYSTEM—Brookings Institution examines Fed membership structure, (Aug 5, 2025)
Organizations Mentioned:Brookings Institution
Fed governors serve fixed 14-year terms that are staggered with one term expiring every two years, while presidents of the 12 regional Fed banks are chosen by their private sector boards of directors, subject Fed approval.
The Brookings Institution has released a commentary authored by David Wessel, Director of The Hutchins Center on Fiscal and Monetary Policy and Senior Fellow, Economic Studies, examining the structure and leadership of the Federal Reserve. The author notes that Fed leadership, including both at the Board and the 12 regional Fed banks, has “undergone substantial turnover in the past few years.”
The commentary explains that Fed governors serve fixed 14-year terms that are staggered, with one term expiring every two years. The president cannot remove a governor except “for cause.” Should a governor leave prior to the expiration of his or her term, the successor completes the term.
The author notes that two current Fed governors were initially appointed by President Donald Trump—Governors Michelle Bowman and Christopher Waller. The recently announced resignation of Adriana Kugler, who was confirmed in September 2023 for a term that expires in January 2026, gives President Trump an opportunity to appoint another member to the board, the author added.
By law, the president nominates a Fed chair and two vice chairs for four-year terms subject to confirmation by the Senate in a vote that is separate from their confirmation as a Fed governor, the author explains. Accordingly, following Michael Barr’s resignation as vice chair on Feb. 28, 2025, President Trump nominated Fed governor Michelle Bowman as vice chair, who took office for a four-year term on June 9, 2025, after being confirmed by the Senate. Current Fed Chair Jerome Powell was originally appointed to the Fed by President Barack Obama in 2012 and was first appointed as Fed Chair by President Trump. Powell was confirmed for a second four-year term as chair on May 12, 2022, and his term as chair expires in May 2026.
The commentary additionally points out that, unlike members of the Fed Board, presidents of the 12 regional Fed banks are chosen by their private sector boards of directors, subject to Fed approval. Fed bank presidents can serve until age 65, unless they are appointed after turning age 55, in which case they can serve for a maximum of 10 years or until they are age 75, whichever comes first. Presidents of the 12 regional Fed banks are up for reappointment every five years. While the Fed has the power to replace any of the Fed bank presidents, it never has, the commentary said.
Companies: Brookings Institution
RegulatoryActivity: BankingOperations DirectorsOfficersEmployers FederalReserveSystem PrudentialRegulation