Deputy_Chairman_of_the_Federal_Reserve

Vice Chair of the Federal Reserve

Vice Chair of the Federal Reserve

Second-highest officer of the United States Federal Reserve System

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. In the absence of the chair, the vice chair presides over the meetings Board of Governors of the Federal Reserve System.

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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, 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 Philip Jefferson who was sworn in on September 13, 2023.[3] The position of vice chair for supervision is currently held by Michael Barr who was sworn in on July 19, 2022.[4]

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.[5][6][7] 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.[8][9][10]

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."[11]

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.[9]

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.[12]

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.[13]

Salary

The Vice Chair of the Federal Reserve and the Vice Chair for Supervision are Level II positions in the Executive Schedule,[1] thus earning the salary prescribed for that level (US$203,700, as of January 2023).[14]

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.[lower-alpha 1][15]

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List of Fed vice chairs 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."[8] Since the Dodd–Frank Act was enacted in 2010, the following people have served as vice chair for supervision.[15]

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See also

Notes

  1. The position was established as Vice Governor of the Federal Reserve Board on December 23, 1913; thereafter became Vice Chairman of the Board of Governors of the Federal Reserve System on August 23, 1935; and re-aligned to be gender-neutral after Rivlin became the first female officeholder on June 25, 1996.
  2. 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 their term expiration, resignation, retirement, or death.
  3. A fixed term with reappointment for the Vice Chair, then known as Vice Governor, was not added to the Federal Reserve Act until the Banking Act of 1935 (P.L. 74-305, 49 Stat. 684).

References

  1. [1]
    5 U.S.C. § 5313
  2. [2]
    "Can the President Fire the Chairman of the Federal Reserve?". Archived from the original on July 27, 2020. Retrieved August 26, 2019.
  3. [3]
    "Philip N. Jefferson sworn in as Vice Chair of the Board of Governors of the Federal Reserve System". Federal Reserve. Retrieved September 13, 2023.
  4. [4]
    "Michael S. Barr sworn in as Vice Chair for Supervision of the Board of Governors of the Federal Reserve System". Federal Reserve. Retrieved July 19, 2022.
  5. [5]
    "The Fed - Board Members". Board of Governors of the Federal Reserve System. February 21, 2018. Retrieved June 1, 2018.
  6. [6]
    "The Structure of the Federal Reserve System". Federalreserve.gov. Retrieved April 24, 2015.
  7. [7]
    Federal Reserve (January 16, 2009). "Board of Governors FAQ". Federal Reserve. Archived from the original on January 17, 2009. Retrieved January 16, 2009.
  8. [8]
    see 12 U.S.C. § 244
  9. [9]
    "Chair of the Federal Reserve Board". www.stlouisfed.org. February 12, 2019. Retrieved June 12, 2018.
  10. [10]
    Reddy, Sudeep (January 11, 2010). "What If The Senate Doesn't Confirm Bernanke By Jan. 31?". The Wall Street Journal. Retrieved November 22, 2020.
  11. [11]
    see 12 U.S.C. § 247
  12. [12]
    see 12 U.S.C. § 247b
  13. [13]
    12 U.S.C. § 244
  14. [14]
    "Salary Table No. 2021-EX Rates of Basic Pay for the Executive Schedule (EX)" (PDF).
  15. [15]
    "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.

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