The reappointment process of regional Federal Reserve bank presidents, typically a routine and unanimous vote, may be in for a shake-up in February. The Trump administration has been seeking to exert more influence over the Fed’s monetary policy, and the reappointment process has become a potential flashpoint in this power struggle. Expectations are building that the Fed board of governors may not unanimously reappoint the regional presidents, with some predicting multiple dissents, potentially split along political lines.
The reappointment process has historically been described as “opaque” and “pro forma,” with votes almost always being unanimous. However, some experts, such as Aaron Klein, senior fellow at Brookings Institution, predict that this time may be different, with a higher likelihood of dissents from the board of governors. Klein warns that breaking this precedent could create a politically motivated whipsaw of regional presidents, where future boards may seek to remove presidents appointed by previous administrations.
Others, such as Derek Tang, CEO of Monetary Policy Analytics, view a more lively reappointment process as a welcome development, signaling that the decision is being taken seriously by the board. Tang notes that a few “no” votes or abstentions can illustrate that the reappointment process is not merely a rubber-stamping or cursory formality.
The Trump administration has also floated the idea of requiring a three-year residency for regional presidents in the districts they represent, which could potentially set up a confrontation between the central bank and the administration. Some experts, such as David Zaring, associate professor at the University of Pennsylvania, think a residency rule could be reasonable, as it would give regional presidents a deeper understanding of the local economy. However, others, such as Peter Conti-Brown, associate professor of financial regulation at the University of Pennsylvania, express concern about the administration’s motivations, warning that the Fed’s insulation from the personality of the president must be preserved.
The reappointment process of the 12 regional Fed presidents, who serve five-year terms, is set to take place on February 28, 2026. The New York Fed president is a permanent voting member of the Federal Open Market Committee, while the other 11 regional presidents rotate onto the committee every second or third year. The outcome of the reappointment process could have significant implications for the Fed’s monetary policy and its relationship with the White House.