Fed votes in favor of reappointing all local bank presidents

The Federal Reserve reappointed 11 of 12 regional bank presidents on Thursday, ending a mini-drama at the central bank in a move a little faster than usual.

The unanimous vote kept the seven governors in line with their ranks, including first vice presidents from chapters spread across the country. This group does not include the Atlanta Fed, whose president, Rafael Bostic, will retire in February.

Regional reserve banks act independently and employ their own presidents, but the move requires approval from the board of governors in Washington, D.C. The term of office for the president is five years, starting on March 1, 2026, and may be removed at the will of the board of directors.

Typically, the Fed waits to announce reappointments until closer to the Feb. 28 expiration of the term. Historically, this term ended in either one-year or six-year terms.

There was also speculation that President Donald Trump, a fierce critic of the Fed, would seek to tighten control over the rate-setting process by firing some regional governors. The Federal Open Market Committee sets the central bank’s key interest rate by a voting group that includes the chair, six other governors, the president of the New York Fed, and a rotating cast of four other regional presidents.

But the unanimous vote also included Gov. Stephen Milan, who was recently appointed by President Trump and whose term expires in January.

Additionally, Treasury Secretary Scott Bessent recently complained that New York state has disproportionate influence over the Fed because the president, who is from New York City, works elsewhere. They include Laurie Logan, who previously worked on the New York Fed’s trading desk and now heads the Dallas district, and Beth Hammack, a former Goldman Sachs executive who lives in Cleveland.

Mr. Bessent proposed requiring district presidents to be residents of their district for three years.