Fed Regional Presidents Secure Rare 'Unanimous Reappointment', Crypto-Friendly Faction Holds Key Positions, 2025 Monetary Policy Tone Initially Set

The Federal Reserve announced on Thursday that its Board of Governors has voted to reappoint all 11 regional Federal Reserve Bank presidents for five-year terms, effective March 1 of next year. The only exception is the President of the Atlanta Fed, who had previously announced his retirement.

The Fed stated that the reappointments were made following a comprehensive evaluation of the regional bank presidents by their respective boards of directors and received the "unanimous consent" of the Board of Governors.

By law, all regional Fed presidents and first vice presidents serve five-year terms. The current terms are set to expire on February 28, 2026. This move resolves a key question regarding the future composition of the Fed's monetary policy committee.

This matter is significant because some central bank watchers had speculated that this once-every-five-year reappointment process could be more contentious than usual, as Trump-appointed governors sought major changes to the national central bank. The vote on the continuation of the current regional Fed presidents' positions also gained importance following the resignation of Fed Governor Adriana Kugler and Trump's attempt to remove Fed Governor Lisa Cook in August.

Treasury Secretary Scott Bessent has stated that he would push for new residency requirements for future regional presidents, mandating they must have lived in their district for at least three years. Regional Fed presidents can still be removed at any time by a majority vote of the Board for cause, but this reauthorization vote removes any potential immediate threat to their positions.

Notably, the mention of "unanimous consent" from the Board implies that the three Trump-appointed governors also supported these reappointment decisions.

It is important to understand that the presidents of the 12 regional Federal Reserve Banks serve within a unique public-private hybrid structure. They are selected by independent boards of directors composed of local community members, but their appointments must be approved by the Washington-based, President-appointed Board of Governors. They bear significant management and operational responsibilities and hold rotating voting rights on the interest-rate-setting Federal Open Market Committee (the New York Fed president has a permanent vote).

Their terms are five years, all ending in February of years ending in '1' and '6', meaning their current terms are set to expire early next year. Atlanta Fed President Raphael Bostic recently announced he will retire at the end of his term in February.

Financial markets are still waiting for the White House to announce whom Trump has chosen to succeed Powell, whose term as Fed Chair ends in May next year. Trump's close economic advisor, Kevin Hassett, is seen as the most likely successor.