Vice Chair of the Federal Reserve
Vice Chair of the Board of Governors of the Federal Reserve System | |
---|---|
since May 23, 2022 | |
United States Federal Reserve System | |
Member of | Board of Governors Open Market Committee |
Reports to | United States Congress |
Seat | Eccles Building Washington, D.C. |
Appointer | President with Senate advice and consent |
Term length | Four years, renewable (as Vice Chair) 14 years, non-renewable (as Governor) |
Constituting instrument | Federal Reserve Act |
Formation | August 10, 1914 |
First holder | Frederic Adrian Delano |
Salary | Executive Schedule, Level II[1] |
Website | www.federalreserve.gov |
The vice chair of the Board of Governors of the Federal Reserve System is the second-highest officer of the Federal Reserve, after the chair of the Federal Reserve, presides in meetings of the Board of Governors of the Federal Reserve System in absence of the chair.
The vice chair and the vice chair for supervision each serve a four-year term after being nominated by the president of the United States and confirmed by the United States Senate, and they serve concurrently as members of the Board of Governors. Both vice chairs may serve multiple terms (consecutively or non-consecutively), pending a new nomination and confirmation at the end of each term, with Ronald Ransom as the longest serving vice chair from 1936 to 1947. They cannot be dismissed by the president before the end of their term.[2]
The position of vice chair is currently held by Lael Brainard who was sworn in on May 23, 2022.[3] The position of vice chair for supervision is currently vacant since October 13, 2021.[4]
1935 reorganization
Section 203 of the Banking Act of 1935 changed the name of the "Federal Reserve Board" to the "Board of Governors of the Federal Reserve System," the "vice governor" as the "vice chairman" of the Board, and renamed "members" of the Board as "governors."[5] The Banking Act of 1935 also made the following structural changes:
- increased the number of members of the Board appointed by the President from six to seven
- required the President to designate one of the persons appointed as "chairman" of the Board and one as "vice chairman" of the Board, each to serve in such role for a term of four years
- specified that the appointive members in office on the date of the act should continue to serve until February 1, 1936, or until their successors were appointed and had qualified; thereafter, the members' terms should be 14 years
- specified that the ex officio members in office on the date of the act (the Secretary of the Treasury and the Comptroller of the Currency) were to continue to serve as ex officio members only until February 1, 1936, but made no further provision for ex officio members
- provided that the "chairman of the Board, subject to its supervision, shall be its active executive officer"
In the 1935 Act, the district deputy heads, who had been labeled the vice governors, received the title of first vice president (e.g., "first vice president of the Federal Reserve Bank of St. Louis" ).[6]
Appointment process
As stipulated by the Banking Act of 1935, the president may designated to serve as Vice Chairman of the Board for four-year terms with the advice and consent of the Senate, from among the sitting governors.[7][8][9] The Senate Committee responsible for vetting a Federal Reserve vice chair and vice chair for supervision nominees is the Senate Committee on Banking.
Duties of the Fed vice сhairs
The vice chair of the Board shall serve in the absence of the chair as leader of the Federal Reserve system until chair's replacement was installed by the Senate.[10][11][12]
By law, the vice chair, as part of the Board, make a full report of its operations to the speaker of the House, on progress towards the Fed's responsibilities and monetary policy objectives, which are "maximum employment, stable prices, and moderate long-term interest rates."[13]
The duties of the vice chair for supervision would include developing policy recommendations regarding supervision and regulation for the Board. The vice chairman of supervision will report to Congress semiannually on the efforts of the board with respect to the conduct of supervision and regulation.[11]
By law, the vice chair for supervision shall appear before the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services of the House of Representatives and at semi-annual hearings regarding the efforts, activities, objectives, and plans of the Board with respect to the conduct of supervision and regulation of depository institution holding companies and other financial firms supervised by the Board.[14]
Conflict of interest law
The law applicable to the chair, vice chairs and all other members of the board provides (in part):
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.[15]
Salary
Vice Chairs of the Federal Reserve, as well as other members of the Board of Governors of the Federal Reserve System, is a Level II position in the Executive Schedule and thus earns the salary prescribed for that level (US$199,300, as of January 2021).[16][1]
List of Fed vice chairs
The following is a list of past and present vice chairs of the Board of Governors of the Federal Reserve System. A vice chair serves for a four-year term after appointment, but may be reappointed for several consecutive four-year terms. Since the Federal Reserve was established in 1914, the following people have served as vice chair.[a][17]
# | Portrait | Name (birth–death) |
Term of office[b] | Tenure length | Appointed by | |
---|---|---|---|---|---|---|
Start of term | End of term | |||||
1 | Frederic Adrian Delano (1863–1953) |
August 10, 1914 | August 9, 1916 | 1 year, 365 days | Woodrow Wilson | |
2 | Paul Warburg (1868–1932) |
August 10, 1916 | August 9, 1918 | 1 year, 364 days | ||
3 | Albert Strauss (1864–1929) |
October 26, 1918 | March 15, 1920 | 1 year, 141 days | ||
4 | Edmund Platt (1865–1939) |
July 23, 1920 | September 14, 1930 | 10 years, 53 days | ||
5 | John J. Thomas (1869–unknown) |
August 21, 1934 | February 10, 1936 | 1 year, 173 days | Franklin D. Roosevelt | |
6 | Ronald Ransom (1882–1947) |
August 6, 1936 | December 2, 1947 | 11 years, 118 days | ||
7 | C. Canby Balderston (1897–1979) |
March 11, 1955 | February 28, 1966 | 10 years, 354 days | Dwight D. Eisenhower John F. Kennedy | |
8 | James L. Robertson (1907–1994) |
March 1, 1966 | April 30, 1973 | 7 years, 60 days | Lyndon B. Johnson Richard Nixon | |
9 | George W. Mitchell (1904–1997) |
May 1, 1973 | February 13, 1976 | 2 years, 288 days | Richard Nixon | |
10 | Stephen Gardner (1921–1978) |
February 13, 1976 | November 19, 1978 | 2 years, 279 days | Gerald Ford | |
11 | Frederick H. Schultz (1929–2009) |
July 27, 1979 | February 11, 1982 | 2 years, 199 days | Jimmy Carter | |
12 | Preston Martin (1923–2007) |
March 31, 1982 | April 30, 1986 | 4 years, 30 days | Ronald Reagan | |
13 | Manuel H. Johnson (born 1949) |
August 4, 1986 | August 3, 1990 | 3 years, 364 days | ||
14 | David W. Mullins Jr. (1946–2018) |
July 24, 1991 | February 14, 1994 | 2 years, 205 days | George H. W. Bush | |
15 | Alan Blinder (born 1945) |
June 27, 1994 | January 31, 1996 | 1 year, 218 days | Bill Clinton | |
16 | Alice Rivlin (1931–2019) |
June 25, 1996 | July 16, 1999 | 3 years, 21 days | ||
17 | Roger W. Ferguson Jr. (born 1951) |
October 5, 1999 | April 28, 2006 | 6 years, 205 days | Bill Clinton George W. Bush | |
18 | Donald Kohn (born 1942) |
June 23, 2006 | June 23, 2010 | 4 years, 0 days | George W. Bush | |
19 | Janet Yellen (born 1946) |
October 4, 2010 | February 3, 2014 | 3 years, 122 days | Barack Obama | |
20 | Stanley Fischer (born 1943) |
June 16, 2014 | October 16, 2017 | 3 years, 122 days | ||
21 | Richard Clarida (born 1957) |
September 17, 2018 | January 14, 2022 | 3 years, 119 days | Donald Trump | |
22 | Lael Brainard (born 1963) |
May 23, 2022 | Incumbent | 2 years, 216 days | Joe Biden |
Vice Chair for Supervision
The Dodd–Frank Wall Street Reform and Consumer Protection Act, which came into force on July 21, 2010, required the President to designate, by and with the advice and consent of the Senate, a new "Vice Chairman for Supervision," who "shall develop policy recommendations for the Board regarding supervision and regulation of depository institution holding companies and other financial firms supervised by the Board and shall oversee the supervision and regulation of such firms."[10] Since the Dodd–Frank Act was enacted in 2010, the following people have served as vice chair for supervision.[17]
# | Portrait | Name (birth–death) |
Term of office[b] | Tenure length | First appointed by | |
---|---|---|---|---|---|---|
Start of term | End of term | |||||
1 | Randal Quarles (born 1957) |
October 13, 2017 | October 13, 2021 | 4 years, 0 days | Donald Trump | |
2 | Michael Barr (born 1965/1966) |
July 19, 2022 | Incumbent | 2 years, 159 days | Joe Biden |
See also
Notes
- ^ Vice Chair was originally known as Vice Governor before August 23, 1935, and were then designated as Vice Chairman until Rivlin became the first woman to be Vice Chair on June 25, 1996.
- ^ a b The start date given here for each officeholder is the day they took the oath of office, and the end date is the day of they term expiration, resignation, retirement, or death.
References
- ^ a b 5 U.S.C. § 5313
- ^ "Can the President Fire the Chairman of the Federal Reserve?". Archived from the original on July 27, 2020. Retrieved August 26, 2019.
- ^ "Lael Brainard sworn in as Vice Chair of the Board of Governors of the Federal Reserve System". Federal Reserve. Retrieved May 23, 2022.
- ^ Schroeder, Pete (October 13, 2021). "Fed announces Quarles to step away from internal regulatory lead role as vice-chair term expires". www.reuters.com. Retrieved October 14, 2021.
{{cite web}}
: CS1 maint: url-status (link) - ^ Sec. 203, Banking Act of 1935, Public Law no. 305, 49 Stat. 684, 704 (Aug. 23, 1935).
- ^ Richardson, Gary; Komai, Alejandro; Gou, Michael (November 22, 2013). "Banking Act of 1935". www.federalreservehistory.org. Archived from the original on November 21, 2020. Retrieved June 12, 2021.
- ^ "The Fed - Board Members". Board of Governors of the Federal Reserve System. February 21, 2018. Retrieved June 1, 2018.
- ^ "The Structure of the Federal Reserve System". Federalreserve.gov. Retrieved April 24, 2015.
- ^ Federal Reserve (January 16, 2009). "Board of Governors FAQ". Federal Reserve. Archived from the original on January 17, 2009. Retrieved January 16, 2009.
- ^ a b see 12 U.S.C. § 244
- ^ a b "Chair of the Federal Reserve Board". www.stlouisfed.org. February 12, 2019. Retrieved June 12, 2018.
- ^ Reddy, Sudeep (January 11, 2010). "What If The Senate Doesn't Confirm Bernanke By Jan. 31?". The Wall Street Journal. Retrieved November 22, 2020.
- ^ see 12 U.S.C. § 247
- ^ see 12 U.S.C. § 247b
- ^ 12 U.S.C. § 244
- ^ "Salary Table No. 2021-EX Rates of Basic Pay for the Executive Schedule (EX)" (PDF).
- ^ a b "Vice Chairs". Membership of the Board of Governors of the Federal Reserve System, 1914–present. The Federal Reserve Board. September 17, 2018. Retrieved September 18, 2018.
Further reading
- "Executive Order 11110 - Amendment of Executive Order No. 10289 as Amended, Relating to the Performance of Certain Functions Affecting the Department of the Treasury". The American Presidency Project. June 4, 1963 – via UCSB.edu.
- Andrews, Edmund L. (November 5, 2005). "All for a more open Fed". New Straits Times. p. 21.
- Beckhart, Benjamin Haggott. 1972. Federal Reserve System. [New York]: American Institute of Banking.
- Shull, Bernard. 2005. The fourth branch: the Federal Reserve's unlikely rise to power and influence. Westport, Conn.: Praeger.