The statute allows the President to remove a member of the Board "for reason." They each serve four-year terms on the Board of Governors and can be renominated as many times as the President wishes until their tenure end. Currently, there are 10 individuals on the board. Two members are appointed by the President, two are elected by the other eight members, and two are elected by the Student Body.
In addition to removing members from the board, the President can also remove any other federal employee. However, this has never happened. The last such removal was in 1857 when President James Buchanan removed Commissioner of Customs David T. Patterson. However, Patterson's removal was not made permanent and he was allowed to return to his post the following year.
Buchanan did move to remove Secretary of State William H. Seward but this was done in retaliation for the refusal of Seward to support his reelection. Seward had been one of his strongest supporters during his campaign and was given the post after him. However, the move was not approved by Congress at the time and so was ineffective.
Since then, all other attempts by Presidents to remove employees have been rejected by Congress. So if you're a federal worker, you can sleep easy knowing that no one can do anything to you without first getting approval from your employer or someone higher up in the chain of command.
Because "members of the Board shall continue to serve until their replacements are selected and have qualified" after their terms of office expire, it is conceivable for a member to serve for substantially longer than a complete term of 14 years.
In order to maintain the appearance of neutrality during times of political controversy, members of the Fed have traditionally been spared removal from office. This tradition was first broken in 1933 when the newly elected President Franklin D. Roosevelt fired Ben Bernanke, then an unknown academic, from his position as chairman of the Fed. However, because the Senate was not in session, this did not constitute a removal under federal law and so was not required by the Constitution. In addition, Congress passed a special act allowing for the continued service of both members of the Board.
Since that time, every Chairman has been forced out by either resignation or impeachment. However, unlike their predecessors who often remained involved in the management of the Fed after leaving office, each new Chairman has refused to stay on the Board beyond one full term. This means that if there were ever a need to replace a Chairman, someone would have to be appointed to a new seat on the Board who would then have to be confirmed by the Senate.
Although no Chairwoman has been removed from office, several have stepped down before the end of their terms.
The board is made up of seven governors who are selected by the president and ratified by the Senate. Governors serve staggered 14-year mandates to provide continuity and stability throughout time. The chairman and vice-chairman are appointed for four-year periods and can be reappointed only once. The current chairman is Jerome H. Powell and the current vice-chairman is Daniel K. Tarullo.
How are they chosen? Presidential appointments are made by the president with the advice and consent of the Senate. A governor cannot serve more than two consecutive terms. Current law does not prohibit a serving governor from being appointed to another position within the federal government or after their term has expired, but it has never happened. A governor can also resign at any time before his or her term ends. As of January 2019, eight people have served as governor of Delaware, three each had been men and women. The first woman to hold the office was Emma L. DuPont who served from 1856 to 1861 during the American Civil War. The current governor is John Carney who was elected in November 2015.
The Federal Reserve System was created by Congress in 1913 during the last months of Woodrow Wilson's presidency. Before then, the nation's money supply was controlled by private banks which produced coins and issued notes that were redeemable in gold upon request.
Mr. President The President appoints the Chairman and Vice Chairman of the Board from among the members, and they are approved by the Senate. They are elected for a four-year term. The first Federal Reserve Bank was appointed on June 25, 1914, by Woodrow Wilson with the goal of promoting national security and prosperity by keeping interest rates low and currency stable.
Today's Fed chairman is Jerome H. Powell, who was sworn in on February 5, 2018. He was nominated to the post by Donald Trump and confirmed by the Senate on January 3, 2018. Before becoming chairman, Mr. Powell had been serving as president of the Federal Reserve Bank of Chicago since 2006. He also served as a commissioner of the Federal Reserve from 2001 to 2006, having been nominated by George W. Bush and confirmed by the Senate.
In addition to overseeing the Chicago bank, which has 110 employees, Mr. Powell has several other positions within the federal government. He is a member of the board of directors of Lockheed Martin and holds shares in the defense contractor. He also serves on the boards of American Airlines and Union Pacific. In 2014, his salary was $191,000.
Before joining the Federal Reserve, Mr. Powell was an executive at Merrill Lynch for 17 years, where he worked his way up from analyst to head of corporate banking for the whole country.