Chairman of the Federal Reserve
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The Chairman of the Board of Governors of the Federal Reserve System is the head of the central banking system of the United States and one of the more important decision-makers in American economic policies. The Chairman is the "active executive officer" (see ) of the Board of Governors of the Federal Reserve System, which is an independent agency of the United States Government created by statute (see ), as part of the Federal Reserve System.
The position was created in 1914. See also History of Central Banking in the United States. The chairman is appointed for a four-year term by the President of the United States (subject to Senate confirmation). In practice, the chairman is often re-appointed several times. The chairman reports twice a year to Congress on the Federal Reserve's monetary policy objectives, testifies before Congress on numerous other issues, and meets periodically with the Secretary of the Treasury.
As of August 2006, the chairman is Ben Bernanke, appointed by George W. Bush and sworn into office on February 1, 2006 for a term lasting until 2010. Bernanke succeeded Alan Greenspan, who served for more than 18 years under four U.S. Presidents.
The law applicable to the Chairman and all other members of the Board provides (in part):
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- 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.
See
[edit] Chairmen of the Board of Governors
- Charles S. Hamlin (August 10, 1914 – August 9, 1916)
- William P. G. Harding (August 10, 1916 – August 9, 1922)
- Daniel R. Crissinger (May 1, 1923 – September 15, 1927)
- Roy A. Young (October 4, 1927 – August 31, 1930)
- Eugene Meyer (September 16, 1930 – May 10, 1933)
- Eugene R. Black (May 19, 1933 – August 15, 1934)
- Marriner S. Eccles¹ (November 15, 1934 – January 31, 1948)
- Thomas B. McCabe (April 15, 1948 – March 31, 1951)
- William McChesney Martin, Jr. (April 2, 1951 – January 31, 1970)
- Arthur F. Burns (February 1, 1970 – January 31, 1978)
- G. William Miller (March 8, 1978 – August 6, 1979)
- Paul A. Volcker (August 6, 1979 – August 11, 1987)
- Alan Greenspan² (August 11, 1987 – January 31, 2006)
- Ben Bernanke (February 1, 2006 – )
¹ Served as Chairman Pro Tempore from February 3, 1948, to April 15, 1948.
² Served as Chairman Pro Tempore from March 3, 1996, to June 20, 1996.
[edit] Historical Note
The Board of Governors of the Federal Reserve did not exist prior to the major reorganizaton of the Fed in 1935 (Banking Act of 1935). Prior to that time, the "Federal Reserve Board" (created in 1914 under the Federal Reserve Act of 1913) had a Board of Directors. The director's salaries were significantly lower and their term of office were much shorter prior to 1935. In short, the Federal Reserve Board members (in Washington) were significantly less powerful than the elite of the regional Federal Reserve Banks prior to 1935.)
Prior to 1935, the heads of the twelve district "Federal Reserve Banks" were called "Governors." 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.
[edit] References
- Beckhart, Benjamin Haggott. 1972. Federal Reserve System. [New York]: American Institute of Banking.
- Meltzer, Allan H. 2003. A history of the Federal Reserve : Volume 1, 1913 -- 1951. Chicago : University of Chicago Press.
- Shull, Bernard. 2005. The fourth branch : the Federal Reserve's unlikely rise to power and influence. Westport, Conn.: Praeger.
- Andrews, Edmund L. (Nov. 5, 2005). "All for a more open Fed". New Straits Times, p. 21.
