What is the process for reappointing Reserve Bank presidents?
Under the Federal Reserve Act all Reserve Bank presidents serve five-year terms that expire at the end of February in years ending with the numerals 1 or 6. Presidents who take office in intervening years are initially appointed for the remainder of their current term. Before the expiration of a president's current term, the Class B and C directors of each Reserve Bank (directors who are not affiliated with a supervised entity) vote on whether to reappoint the president to a new term.
In considering whether to reappoint, the eligible Reserve Bank directors assess their president's performance. The assessment includes consideration of, for example, the president's ability to effectively lead the Reserve Bank, the president's performance in achieving the Reserve Bank's and Federal Reserve System's strategic objectives, and the president's ability to effectively represent the Federal Reserve to the public. The Reserve Bank directors' assessment is also informed by annual discussions between the chair and deputy chair of each Reserve Bank board and the Board of Governors' Committee on Federal Reserve Bank Affairs.
Reappointments are subject to approval by the Board of Governors, which reviews the Reserve Bank directors' assessment of their president's performance and any additional perspectives from members of the Board of Governors.