"The presidents' five-year terms were due to end in February, and prior reappointments have typically come closer to expiration dates as they historically have been routine affairs. But recent suggestions from the Trump administration that new conditions ought to be placed on the presidents raised concerns it was seeking a wider leadership shakeup. Earlier this month, Treasury Secretary Scott Bessent floated a three-year residency requirement for Fed presidents. Days later, National Economic Council Director Kevin Hassett, who is the frontrunner to become the next Fed chair, endorsed the idea."
"Meanwhile, the rate-setting Federal Open Market Committee is comprised of the seven members of the Fed board, plus five of the 12 Fed presidents, with four of them rotating on an annual basis. In recent FOMC meetings-including Wednesday's-Fed presidents have been more resistant to rate cuts while Trump-appointed governors have been more aggressive in calling for cuts."
The Federal Reserve announced early reappointments for 11 of its 12 regional bank presidents, with the Atlanta Fed chief Raphael Bostic already set to step down. The presidents' five-year terms were due to end in February, but renewals occurred ahead of schedule amid proposals from the Trump administration for new conditions on presidents, including a floated three-year residency rule. Fed presidents are nominated by regional boards and approved by the Board of Governors, meaning shifts on the board could enable broader leadership changes. Fed presidents have recently resisted rate cuts while Trump-appointed governors pushed for cuts, and 10-year Treasury yields rose as investors priced in fewer cuts.
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