Final answer:
Members of the Board of Governors of the Federal Reserve are appointed by the President of the United States and confirmed by the Senate for 14-year terms. This process aims to minimize political influence and foster independent economic policymaking. The President cannot request a Governor's resignation, underscoring the Fed's independence.
Step-by-step explanation:
The Board of Governors of the Federal Reserve System is appointed in a specific manner to ensure its independence and reduce political influence. The structure of the Federal Reserve is distinctive due to its semi-decentralized nature, which combines governmental appointees and representation from private-sector banks. At the national level, the Federal Reserve's policymaking body, the Board of Governors, is composed of seven members. These members are appointed by the President of the United States and must be confirmed by the Senate. Appointments to the Board of Governors are for 14-year staggered terms, with one term expiring on January 31 of every even-numbered year, providing stability and continuity.
This system of appointment is designed to insulate the Board as much as possible from political pressure, allowing policy decisions to be made based solely on economic considerations. It is also important to note that except when filling an unfinished term, Board members serve only one term, enhancing their independence from political forces. Unlike Cabinet positions, the President cannot request a Federal Reserve Governor's resignation, and the Fed's policy decisions do not require Congressional approval.