12 voting members:
- 7 members of the Board of Governors
- nominated by the president, confirmed by the senate.
- full term = 14 years
- the chair and vice chairs serve a term of 4 years
- the president of the Federal Reserve Bank of New York
- 4 of the remaining 11 Reserve Bank presidents, who serve one-year terms on a rotating basis
8 meetings per year to adjust the fed funds rate (overnight interbank lending rate).
2 goals:
- stabilize prices
- maximize employment
Whether the members - current and future - are dovish/hawkish can be a signal for future market trends. E.g. when Kashkari, a dove, was elected in 2016, the market went up. (When the bulls run, hawks fly in. When the bears come out, doves fly in.)
To ensure the Fed’s independence from the government, removing a board member requires a disapproving vote from more than 2/3 of Congress.