Federal government agency that is the governing body of the Federal Reserve System. Supported by a staff of about 2,000, the Board is composed of seven members (“Governors”), who are appointed by the President and confirmed by the Senate. Board members have responsibility for the conduct of U.S. monetary policy, a responsibility they carry out as members of the Federal Open Market Committee. The Board also supervises the Federal Reserve Banks. In addition, the Board shares with the Reserve Banks responsibility for supervising and regulating certain financial institutions and activities, has broad responsibilities in the nation’s payments system, and administers most of the nation’s laws regarding consumer credit protection.
The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years. One term begins every two years, on February 1 of even-numbered years. A member who serves a full term may not be reappointed. A member who completes an unexpired portion of a term may be reappointed. 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 a term of four years. A member's term on the Board is not affected by his or her status as Chairman or Vice Chairman.