On Friday, President Obama announced he plans to nominate three individuals to the Board of Governors of the Federal Reserve. President Obama intends for Stanley Fischer to serve as Vice Chair and Governor and Lael Brainard to serve as Governor. The President also nominated Jerome Powell for a second term as Governor.
The president nominates members of the Board, who are then confirmed by the Senate. A ”fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country,” is required by law. There cannot be two Governors from the same Federal Reserve District. Terms are for fourteen years, and usually, one term expires on January 31, during even numbered years. However, three vacancies have arisen so far this year.
If confirmed, Fisher will be taking over Fed Chair Janet Yellen’s previous post. He will represent New York, New York, and his term will expire in 2020. Fisher previously served as the Governor of the Bank of Israel from 2005 to 2013. In that position, he steered Israel’s economy through the financial crisis.