By: Michael E. Martinez

The Federal Reserve System is comprised of a Board of Governors. The Federal Reserve Board was created by the U.S. Congress through the passing of the Owen-Glass Act, signed by President Woodrow Wilson on December 23, 1913. The seven members of the board are appointed by the president and confirmed by the Senate. As of 2005, there are two openings on the Board of Governors, following the departures of Ben Bernanke and Edward Gramlich. The current members of the Board of Governors are Alan Greenspan, Chairman, Roger Ferguson, Jr., Vice Chairman, Susan Bies, Donald Kohn and Mark Olson.

The full term on the Board of Governors is fourteen years; one term begins every two years on February 1st on even numbered years. A member who serves a full term may not be reappointed. A member who completes an unexpired portion of a term may be reappointed. All terms end on their statutory date regardless of the date on which the member is sworn into office. The chairman and the vice chairman of the board are named by the president from among the members and are confirmed by the Senate, they serve a term of four years. A member's term on the board is not affected by his or her status as chairman or vice chairman. Alan Greenspan took office June 19, 2004, for a fifth term as Chairman of the Board of Governors of the Federal Reserve System; Greenspan will retire January 31, 2006 after 18 years as chairman.

Roger W. Ferguson, Jr. originally took office on November 5, 1997, as a member of the Board to fill an unexpired term ending January 31, 2000. Ferguson was then sworn in July 26, 2001, as a member of the Board of Governors of the Federal Reserve System to a full term ending January 31, 2014. On October 28, 2003, Dr. Ferguson was sworn in as Vice Chairman of the Board of Governors of the Federal Reserve System for a second four-year term ending October 28, 2007. Susan Bies took office on December 7, 2001, to a full term as a member of the Board of Governor. Mark Olson took office on December 7, 2001, to fill an unexpired term ending January 31, 2010. Donald Kohn took office on August 5, 2002, as a member of the Board of Governors of the Federal Reserve System for a full term ending January 31, 2016.

The Federal Reserve Open Market Committee comprises the seven members of the Board of Governors and five representatives selected from the Federal Reserve Banks. The representative from the Second District of New York is a permanent member while the rest of the banks rotate on two and three year intervals.

The Board of the Members devotes their entire time to the business of the board and receives an annual salary of $15,000 a month together with necessary traveling expenses. The members of the board during the time that they are in office can not hold a position in any member bank. The Principal Office of the Board is located in Washington, DC; it is headquartered in the Eccles Building on Constitution Avenue. No member of the Board of Governors of the Federal Reserve System should be an officer or director of any bank, banking intuition, trust company, or Federal Reserve Bank while in office; it is prohibited for them to own any equity in any banking institution.

The President has the power to fill all vacancies that happen on the Board of Governors of the Federal Reserve during the recess of the Senate. The Board of Governors annually makes a full report of its operations to the Speaker of the House of Representatives. President Bush nominated Ben Bernanke to replace Alan Greenspan as Chairman of the Board of Governors.