WASHINGTON — The Federal Reserve’s Board of Governors has reappointed all 12 regional Federal Reserve Bank presidents, a routine action that has taken on new weight after the Trump administration signaled it may seek major changes to the appointment process.
“Regional Fed presidents wield significant influence over monetary policy, sharing voting power on interest-rate decisions with the seven Senate-confirmed governors,” noted NBC News.
Earlier this week, Treasury Secretary Scott Bessent said he planned to propose a rule requiring future regional Fed presidents to have lived in their districts for at least three years.
‘Presidents Must Live in Districts’
“I am going to start advocating, going forward, not retroactively, that regional Fed presidents must have lived in their district for at least three years,” Bessent said at a New York Times DealBook conference.
He suggested Fed Chair Jerome Powell and the board could effectively adopt such a requirement on their own by vetoing candidates who fall short.
As NBC News further noted, Bessent said he has not formally submitted the proposal, but noted the Fed has the authority to impose such criteria. It remained unclear how many sitting regional presidents would have been affected. Many previously worked on Wall Street, in major corporations or at the New York Fed before taking their current posts.
Miran Votes in Favor
Stephen Miran, temporarily on leave from the White House to serve as a Fed governor, joined Powell and the other governors in unanimously approving the reappointments. Vice Chair for Supervision Michelle Bowman and Gov. Christopher Waller — both appointed by Trump during his first term — also voted in favor.
“The Fed last conducted the typically uneventful review in January 2021, making Thursday’s earlier-than-usual announcement notable. Reappointments must be finalized by the end of February,” stated NBC News.
Criticism of Central Bank
The report noted the move comes as Trump administration officials escalate criticism of the central bank. National Economic Council Director Kevin Hassett recently endorsed Bessent’s proposal, and Trump has suggested Hassett is a top contender to replace Powell when his term expires in May.
In its statement, the Fed said the approvals followed “a comprehensive review by the boards of directors of the regional Reserve Banks.”
The central bank’s rate-setting Federal Open Market Committee includes the governors, the New York Fed president and four regional presidents who rotate annually.
