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.
Before that, hew was the Vice Chair of Citigroup from 2002 to 2005, and the First Deputy Managing Director of the International Monetary Fund. He has taught economics at MIT and the University of Chicago. Fisher also served as the Vice President, Development Economics, and Chief Economist at the World Bank.
In the statement released by the White House, President Obama said that, “Stanley Fischer brings decades of leadership and expertise from various roles. He is widely acknowledged as one of the world’s leading and most experienced economic policy minds and I’m grateful he has agreed to take on this new role and I am confident that he and Janet Yellen will make a great team.”
For several months, there has been speculation that Brainard would be tapped to serve on the Board of Governors. It was kick-started when she stepped down from her most recent position, the U.S. Department of the Treasury’s Under Secretary for International Affairs, which she held from 2010 to 2013.
Before working with the Administration, she served as Vice President and the Founding Director of the Global Economy and Development Program at the Brookings Institution. She worked for the Clinton Administration as Deputy National Economic Adviser and Deputy Assistant to the President for International Economics. Brainard also taught at MIT. Obama called her one of his “top and most trusted international economic advisers during a challenging time not just at home, but for our global economy as well, and her knowledge of international monetary and economic issues will be an important addition to the Fed.” Brainard would represent the Richmond, Virginia area, until 2026.
Powell’s nomination is to continue filling the seat he currently holds on the Board. In 2012, he stepped in to fill an unexpired term, which ends January 31, 2014. Before being a Governor, he was a visiting scholar at the Bipartisan Policy Center, and a partner at the Carlyle Group. He was an Assistant Secretary, as well as an Under Secretary of the Treasury Department in the George H.W. Bush Administration.
If reconfirmed, Powell will represent Philadelphia, Pennsylvania until 2028. The President said of Powell that he “has proven to be an effective and wise voice at the Fed,” and is “thankful” Powell consented to serving a second term.