Federal Reserve Appointees
Once someone is appointed to the Federal Reserve's Board of Governors, how long does each appointment to this position of power last?
Correct Answer
The Board of Governors of the Federal Reserve has seven members who are appointed by the U.S. President and confirmed by the U.S. Senate for terms of 14 years. The law states that they may be removed from office by the President only "for cause," which is an undefined term generally understood to mean that they cannot be removed for their policy views. The Federal Reserve Act gives these people formidable powers that have wide-ranging impacts on the economy, such as inflation, interest rates, and employment. Under current law, Fed Governors cannot be audited for the effectiveness of their policy decisions, but they are subject to periodic audits for waste, fraud, and abuse by the Government Accountability Office and the Fed's Inspector General.