Fed Inspector General Opens Inquiry Into Regional Bank President Reappointments

The Federal Reserve’s inspector general has opened an inquiry into the process used by the Board of Governors to reappoint regional Federal Reserve bank presidents and their deputies.

The investigation, announced on May 27, is intended to assess whether the reappointment process follows Federal Reserve Administrative Manual requirements and best practices. It will also examine the quality of executive performance evaluations.

The inquiry comes amid heightened attention to the transparency of how regional Fed leaders are selected and retained, as well as concerns about possible political influence in the process.

Regional Federal Reserve presidents play an important role in the central bank system, and scrutiny of their reappointment process adds a governance dimension to broader debates about accountability inside the Fed.