Moneyzine
Contents
/Personal Finance/Board of Governors

Board of Governors

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 25th, 2023
Advertiser Disclosure

Definition

The term Board of Governors refers to a team of individuals that direct and supervise actions of the Federal Reserve System. The Board of Governors consists of seven members appointed by the President of the United States.

Explanation

The Federal Reserve System was created in 1913 as part of the Federal Reserve Act, which was promulgated following a number of disruptive financial events. Both the Great Depression and the Great Recession resulted in an expansion of the Federal Reserve's role in protecting the United States' economy. The Federal Reserve regulates monetary policy, minimizes the risk to financial systems, ensures the safety of individual financial institutions, and provides consumer protections. All of these activities occur under the direction and supervision of its Board of Governors.

There are seven members of the Board of Governors, which are appointed by the President of the United States and confirmed by the United States Senate. Each governor serves for a term of 14 years and the terms are staggered, with one position expiring on January 31st of even numbered years. While a governor cannot be reappointed to a second 14-year term, if the governor served a partial term, they can be reappointed. Once placed on the Board of Governors, the member cannot be removed from office based on their political views. The Chair and Vice Chair are appointed by the President and serve a four-year term in that role. They can be re-nominated to this position until their 14-year term expires.

Related Terms

Related Content

How to Make a Million Dollars in 10 Years
Truthfully, this title should actually be “How to Make a Million Dollars in 10 Years Without Going Into Debt", but that is just getting a little too winded for my liking. It’s true though!
March 26th, 2024
How to Apply Maslow’s Hierarchy to Your Money This Year
You might vaguely remember your psychology teacher talking about Maslow. He pointed at a picture of a triangle as you nodded off in the back of the school room.
March 27th, 2024
How to Tackle Multiple Savings Goals
When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house.
March 22nd, 2024
The Countdown to Early Retirement: 10 Expenses to Eliminate
Dreaming of waving goodbye to the daily grind five years ahead of schedule? The road to early retirement is paved with more than good intentions; it requires a meticulously crafted strategy with surprising twists. It's not solely about what you should be doing—like diligently saving a portion of your income or investing wisely—but also about what you need to stop doing.
March 22nd, 2024
What’s Your One Page Financial Plan? Mapping out Your Future
“What’s your one page financial plan?” — This is the absolute best question that I’ve heard asked in a long time. Instead of talking about your hot stock pick or your fancy investment that shields you from paying taxes, I think it’s time for all of us to step back and ask ourselves the most intelligent question of all, “Why the heck do I care about money anyway??”
March 14th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.