Under the Federal Reserve Act of 1913 (Dec. 23, 1913, ch. 6, § 10, 38 Stat. 259), what requirement governs the removal of sitting Federal Reserve governors?

Question

Accepted Answer

Section 10 of the Federal Reserve Act of December 23, 1913 (38 Stat. 259), codified today at 12 U.S.C. § 242, provides that each member of the Board of Governors “shall hold office for a term of … unless sooner removed for cause by the President.” This “for cause” removal protection has been understood to require a showing of misconduct—historically framed as inefficiency, neglect of duty, or malfeasance in office—thus insulating governors from removal based solely on policy disagreements and preserving the central bank’s independence ().

Under the Federal Reserve Act of 1913 (Dec. 23, 1913, ch. 6, § 10, 38 Stat. 259), what requirement governs the removal of sitting Federal Reserve governors?

Explanation

Sources

Related Questions

PRINCIPLE

EXPLORE

RESOURCES