By | April 14, 2022

Who votes on setting rates? The Federal Open Market Committee (FOMC), comprised of the board of governors (seven), the president of the Federal Reserve Bank of New York, and four seats that rotate amongst the remaining Fed banks.

There are currently five open spots on the board of governors and vacancies at two Fed banks.

  • Chair – Current chair Jerome Powell’s renomination passed the Senate Banking Committee and advanced to the full Senate. We expect his nomination to be confirmed.
  • Vice chair – Lael Brainard’s nomination also passed the committee. Will she be confirmed?
  • Vice chair for bank supervision – Sarah Bloom Raskin’s nomination was withdrawn … she previously pressed the Fed to take a proactive role in combating financial risks associated with climate change.
  • Governors – Nominations of Lisa Cook and Phillip Jefferson passed the Senate Banking Committee, advancing them to the full Senate. Ms. Cook’s nomination passed on a tie vote in the committee. Will she be confirmed?
  • Boston – Dr. Susan M. Collins assumes the presidency of the Boston Fed starting July 1st.This seat is a voting member of FOMC in 2022.
  • Dallas – Open seat / alternate member in 2022, voting member of FOMC in 2023.

With the exception of Dallas, we expect a flock of new doves on the FOMC team. These nominations bear watching.