Federal Reserve unanimously approves reappointment of regional bank presidents
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WASHINGTON (AP) — The Federal Reserve’s governing board unanimously approved the reappointment of nearly all of the Fed’s 12 regional bank presidents, a group that has come under scrutiny by the Trump administration.
The Fed’s board approved the reappointment of 11 of the presidents, with the only exception being the Atlanta Fed, where current president Raphael Bostic is stepping down at the end of the February and a new president hasn’t been named.
The regional bank presidents all serve five-year terms that end in years ending in 1 and 6. They are routinely approved by the Fed’s governing board. The approval has taken on a higher profile as President Donald Trump has sought to exert greater control over the central bank, which has traditionally been seen as independent of day-to-day politics. The unanimous approval by the board means that the three Fed officials appointed by Trump also voted to approve the reappointments.
Last week, Treasury Secretary Scott Bessent said he would push for a new requirement that the regional bank presidents live in their districts for at least three years before being appointed.
Bessent said that the new requirement would be for future appointments and not apply to current presidents. But his comments came just after several bank presidents publicly argued in favor of keeping the Fed’s short-term interest rate unchanged, while the Trump administration is pushing for much lower interest rates.
The presidents of the Cleveland, Dallas, and St. Louis Fed banks previously worked in New York City before being named as presidents.
The Fed’s complex structure includes a seven-member board of governors in Washington as well as 12 regional banks intended to bring a diverse set of perspectives to the central bank’s deliberations. The bank presidents are picked by their bank’s board of directors, made up of business and nonprofit leaders. Every five years the Fed governors decide whether to approve their reappointment.
The president of the New York Fed votes on every interest rate decision, while four of the remaining 11 regional presidents vote on a rotating basis.