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What is a Fed Chair?
The central bank of the United States is the Federal Reserve. Mandated by the Federal Reserve Act of 1913 and universally known as “the Fed,” its main job is to promote stable prices and maximum employment for the American people. It accomplishes this by setting and managing monetary policies and conducting open market operations.
The chief executive officer of the Federal Reserve is known as the Fed Chair. The Fed Chair is the agency’s most well-known personality; theirs is its face to the public.
In order to understand the breadth of the Fed Chair’s powers, one must first understand how the Fed is structured:
- The Board of Governors is the Fed’s governing body. It sets reserve requirements and manages the emergency lending facility known as the discount window.
- The 12 Federal Reserve Banks conduct the country’s day-to-day fiscal operations, such as printing currency, making loans, and reporting critical economic information to the Board of Governors, which uses it to craft policy.
- The Federal Open Market Committee (FOMC) raises, lowers, or maintains the Fed funds rate, which is the basis for prevailing interest rates in America. It also buys and sells Treasury securities through open market operations.
As the leader of the Federal Reserve, the Fed Chair serves as the head of the Board of Governors and chairs the Federal Open Market Committee. They are appointed to a four-year term by the President of the United States and confirmed by the U.S. Senate. The Fed Chair, as well as the two Vice Chairs, must be chosen from among the Board of Governors.
What does the Fed Chair do?
The Fed Chair’s job is to manage all aspects of Federal Reserve operations. They also report twice a year to Congress on the state of the country's monetary policies, as well as hold regular meetings with the Secretary of the Treasury. They also conduct press conferences in which they relay policy decisions to the general public—such as whether to increase, decrease, or maintain the Fed funds rate in order to keep the economy strong.
While these decisions—especially rate hikes—can often prove unpopular, there has never been a Fed Chair who has been fired, although it is possible for them to be impeached.
Who is the current Fed Chair?
Jerome “Jay” Powell is the current Fed Chair. He was appointed by President Donald Trump on February 5, 2018, and his term runs through May 2026.
When does the Fed Chair speak?
Every six weeks, the Federal Open Market Committee meets to discuss prevailing financial and economic conditions and determine its monetary policy decisions. These meetings are not open to the public, but the Fed Chair does hold a live press conference after policy decisions are released. Once per quarter, they also discuss a summary of economic projections.
Here are some upcoming Fed chair speaking dates:
- September 20, 2023
- November 1, 2023
- December 13, 2023
- January 31, 2024
- March 20, 2024
- May 1, 2024
These press conferences usually take place at 2:30 PM ET and can be accessed via the Federal Reserve’s website or Youtube channel.
Who were the last 3 Fed Chairs?
The Fed Chairs who served prior to Jerome Powell were:
- Janet Yellen (Feb 4, 2014–Feb 3, 2018), who championed the Federal Reserve through the longest bull market in U.S. history
- Ben Bernanke (February 1, 2006–January 31, 2014), who was best known for steering the American economy through the Financial Crisis of 2007–2008
- Alan Greenspan (August 11, 1987–January 31, 2006), who promoted stability on Wall Street after the stock market crash of 1987 by reducing interest rates and increasing Fed decision-making transparency
Who was the best Fed Chair?
According to U.S. News & World Report, which ranked Fed Chairs based on stock market performance by annualized inflation-adjusted returns since the Federal Reserve began, the most successful Fed Chairs were:
| Fed Chair | Timeframe | Market Performance |
|---|---|---|
Daniel R. Crissinger |
1923–1927 |
+17.2% |
Janet Yellen |
2014–2018 |
+11.9% |
Paul Volcker |
1979–1987 |
+11.9% |
How much is the Fed Chair paid?
According to the Office of Personnel Management, the Fed Chair makes a salary of $226,300 per year, and their reappointment is contingent on both Presidential and Congressional approval.
