Q: What is the Board of Governors of the Federal Reserve System? Who are the current board members?
The Federal Reserve System is composed basically of a central, governmental agency—the Board of Governors in Washington, D.C.—and 12 regional Federal Reserve banks.
The seven members of the Board of Governors are nominated by the president of the United States and confirmed by the Senate. A full term is 14 years. The appointments are staggered so that one term begins every two years, on Feb. 1 of each even-numbered year. A member who serves a full term may not be reappointed; however, a member who is appointed and confirmed to serve the unexpired portion of a term may later be reappointed to a full term. All terms end on their statutory date regardless of the date on which the member is sworn into office.
The chairman and the vice chairman of the Board are named by the president from among the members and are confirmed by the Senate. They serve four-year terms. A member's term on the Board is not affected by his or her status as chairman or vice chairman.
Current members of the Board of Governors
Q: What are the Federal Reserve banks?
Each of the 12 Federal Reserve banks is an operating arm of the Federal Reserve System. These banks have a total of 25 branches. The banks and branches carry out various functions, including operating a nationwide payment system, distributing the nation's currency and coin, supervising and regulating member banks and bank holding companies, and serving as the banker for the U.S. Treasury. The Federal Reserve banks are located in Boston, New York City, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco (See a listing and map of the districts.)
Q: Which states compose the Eighth Federal Reserve District based in St. Louis? Where are the branches?
The Federal Reserve Bank of St. Louis territory covers the Eighth Federal Reserve District, which includes all of Arkansas, eastern Missouri, southern Indiana, southern Illinois, western Kentucky, western Tennessee and northern Mississippi. Branch offices are located in Little Rock, Louisville and Memphis.
Q: Does the St. Louis Fed have a board of directors? What do the board members do? How are they chosen?
Each Reserve bank has a board of directors. Reserve bank directors, under Board of Governors' supervision, oversee their bank's operations and appoint the bank's president and first vice president. Of the nine directors, six—three Class A, representing the banking industry, and three Class B—are elected by member banks, including all nationally chartered banks and state-chartered banks that meet certain requirements. Three Class C directors, including the chairman and deputy chairman, are appointed by the Board of Governors. Class B and C directors represent agriculture, commerce, industry, labor and services in the Federal Reserve District. They cannot be officers, directors or employees of a bank. Class C directors cannot be bank stockholders.
Boards of branch banks have five or seven directors, most of whom are appointed by head-office directors and the rest by the Board of Governors.
Boards of directors of the Reserve banks and branches provide the Federal Reserve System with a wealth of information on economic conditions in virtually every corner of the nation. This information is used by the Federal Open Market Committee (FOMC) and the Board of Governors in reaching major decisions about monetary policy. Information from directors and other sources gathered by the Reserve banks is also shared with the public in a special report—informally called the Beige Book— which is issued about two weeks before each meeting of the FOMC. In addition, every two weeks, the board of each bank must recommend to the Board of Governors a discount rate for each bank. A recommendation for a change cannot take effect unless the Board of Governors approves it.
Current list of the Federal Reserve Bank of St. Louis' board of directors
Q: What role does the St. Louis Fed play in the economy/payment system?
The Federal Reserve Bank of St. Louis is one of 12 regional Reserve banks in the United States that, together with the Board of Governors in Washington, D.C., make up the Federal Reserve System—the nation's central bank. Since its establishment by an act of Congress in 1913, the Federal Reserve System's primary goal has been to foster a sound financial system and a healthy economy. To advance this goal, the St. Louis Fed and the other regional Reserve banks help formulate monetary policy, supervise and regulate banks and bank holding companies, and provide financial services to depository institutions and the federal government.