Fed Board Unanimously Approves Reappointment of 11 Regional Bank Presidents

WASHINGTON (AP) — In a unanimous decision, the Federal Reserve's governing board has renewed the appointments of nearly all regional bank presidents. Eleven of the twelve presidents received approval for new five-year terms. The only exception is the Federal Reserve Bank of Atlanta, where current President Raphael Bostic is departing at the end of February, and a successor has not yet been selected. These regional presidents, who serve terms ending in years concluding with 1 and 6, are customarily reaffirmed by the board. This process has attracted increased attention as the Trump administration has attempted to gain more control over the central bank, an institution historically valued for its independence from political pressures. The board's unanimous vote indicates that the three Fed officials appointed by President Trump also supported the reappointments. The debate over the Fed's independence was further highlighted last week when Treasury Secretary Scott Bessent proposed a new requirement for future appointees, suggesting they must reside in their respective districts for at least three years prior to appointment. This proposal followed public statements from several bank presidents advocating to maintain the current short-term interest rate, contrary to the administration's desire for significantly lower rates. The Fed's structure includes a Washington-based board of governors and 12 regional banks designed to incorporate diverse viewpoints. Regional presidents are chosen by their local boards of directors, composed of business and nonprofit leaders, with the Fed governors conducting a reappointment review every five years. The New York Fed president holds a permanent vote on interest rate decisions, while the other eleven presidents rotate voting privileges.