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Vice Chair of the Federal Reserve

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Vice Chair of the Board of Governors of the Federal Reserve System
Seal of the Board of Governors
Flag of the Federal Reserve System
Incumbent
Lael Brainard
since May 23, 2022
United States Federal Reserve System
Member ofBoard of Governors
Open Market Committee
Reports toUnited States Congress
SeatEccles Building
Washington, D.C.
AppointerPresident
with Senate advice and consent
Term lengthFour years, renewable (as Vice Chair)
14 years, non-renewable (as Governor)
Constituting instrumentFederal Reserve Act
FormationAugust 10, 1914; 110 years ago (1914-08-10)
First holderFrederic Adrian Delano
SalaryExecutive Schedule, Level II[1]
Websitewww.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, and shall preside at 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, 107 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 TBD Joe Biden

See also

Notes

  1. ^ 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.
  2. ^ 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

  1. ^ a b 5 U.S.C. § 5313
  2. ^ "Can the President Fire the Chairman of the Federal Reserve?". Archived from the original on July 27, 2020. Retrieved August 26, 2019.
  3. ^ "Lael Brainard sworn in as Vice Chair of the Board of Governors of the Federal Reserve System". Federal Reserve. Retrieved May 23, 2022.
  4. ^ 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)
  5. ^ Sec. 203, Banking Act of 1935, Public Law no. 305, 49 Stat. 684, 704 (Aug. 23, 1935).
  6. ^ 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.
  7. ^ "The Fed - Board Members". Board of Governors of the Federal Reserve System. February 21, 2018. Retrieved June 1, 2018.
  8. ^ "The Structure of the Federal Reserve System". Federalreserve.gov. Retrieved April 24, 2015.
  9. ^ Federal Reserve (January 16, 2009). "Board of Governors FAQ". Federal Reserve. Archived from the original on January 17, 2009. Retrieved January 16, 2009.
  10. ^ a b see 12 U.S.C. § 244
  11. ^ a b "Chair of the Federal Reserve Board". www.stlouisfed.org. February 12, 2019. Retrieved June 12, 2018.
  12. ^ Reddy, Sudeep (January 11, 2010). "What If The Senate Doesn't Confirm Bernanke By Jan. 31?". The Wall Street Journal. Retrieved November 22, 2020.
  13. ^ see 12 U.S.C. § 247
  14. ^ see 12 U.S.C. § 247b
  15. ^ 12 U.S.C. § 244
  16. ^ "Salary Table No. 2021-EX Rates of Basic Pay for the Executive Schedule (EX)" (PDF).
  17. ^ 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

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