The Federal Reserve Bank of Minneapolis works within the Federal Reserve System and with other public and private sector institutions to foster the safety, soundness and vitality of our economic and financial systems.
The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks which, together with the Board of Governors in Washington, D.C., make up the Federal Reserve System. The Fed, as the system is commonly called, is an independent governmental entity created by Congress in 1913 to serve as the central bank of the United States. It is responsible for
formulating and executing monetary policy,
supervising and regulating depository institutions,
providing an elastic currency,
assisting the federal government's financing operations, and
serving as the banker for the U.S. government.
In addition, the Federal Reserve System has important roles in operating the nation's payments systems, protecting consumers' rights in their dealings with banks and promoting community development and reinvestment.
Frequently Asked Questions
What is the role of the Federal Reserve Bank president?
Under the Federal Reserve Act, the president of a Federal Reserve Bank is the chief executive officer of the Bank. The president is responsible for all the Bank's activities, including monetary policy, bank supervision and regulation, and payments services. In addition, the president serves on the Federal Reserve's chief monetary policymaking body, the Federal Open Market Committee (FOMC).
How is a Federal Reserve Bank president selected?
The process for selecting a Federal Reserve Bank president is set forth in the Federal Reserve Act. Subject to the approval of the Federal Reserve Board of Governors, the president is appointed by the Reserve Bank's Class B and C directors (those directors who are not affiliated with a supervised entity).
To conduct the search, the Reserve Bank's board of directors forms a search committee composed of Class B and C directors. That committee hires a search firm to help identify a broad, diverse, highly qualified candidate pool. The committee considers a large nationwide pool of candidates, both within and outside the Federal Reserve System, who meet the position's qualifications.
What are the responsibilities of the president, and what attributes are you looking for in a new Federal Reserve Bank president?
The Board of Governors website describes the responsibilities and notes that the Federal Reserve Banks seek candidates who can:
guide the focus of the Bank's economic research and gather economic intelligence through interactions with the Bank's board of directors and other business and community contacts,
provide keen insights to Federal Open Market Committee policy discussions,
communicate clearly about monetary policy,
be a strong chief executive officer of the Bank,
ensure that the Bank maintains an effective system of bank supervision by faithfully carrying out its delegated authority from the Board of Governors, and
make strong personal contributions to matters requiring collective System action or direction.
What is the length of term of a Federal Reserve Bank president?
The president of a Federal Reserve Bank is appointed for a term of five years. The terms of all the presidents of the 12 District Banks run concurrently, ending on the last day of February of years numbered 6 and 1 (for example, 2001, 2006 and 2011). The appointment of a president who takes office after a term has begun ends upon the completion of that term. A president of a Reserve Bank may be reappointed after serving a full term or an incomplete term. Reserve Bank presidents are subject to mandatory retirement upon becoming 65 years of age. However, presidents initially appointed after age 55 can, at the option of the board of directors, be permitted to serve until attaining 10 years of service in the office or age 75, whichever comes first.
Could you describe the role of the search committee?
The search committee of the Federal Reserve Bank of Minneapolis, consisting of all of the Class B and C directors, will interview a range of potential candidates and forward to the Board of Governors a list of up to three finalist candidates, all of whom are interviewed by the governors.
The Bank's Class B and C directors then formally appoint a candidate, subject to the approval of the Board of Governors.