Final answer:
The Board of Governors of the Federal Reserve consists of seven members appointed by the President and confirmed by the Senate for 14-year terms to insulate them from political pressure. The president selects the chairman, and all commissioners serve five-year terms. Appointment to the board requires confirmation from the U.S. Senate and cannot be revoked by the President.
Step-by-step explanation:
The composition of the Federal Reserve is managed by a Board of Governors, consisting of seven members who are appointed by the President of the United States and confirmed by the Senate. The appointments are for 14-year terms, arranged so that one term expires on January 31 of every even-numbered year. This long and staggered term structure is designed to insulate the Board of Governors from political pressure and allow them to make policy decisions based solely on economic merits.
The members of the Board of Governors do not need to be from a specific political party, but only three members can be from the same party at any given time. Furthermore, none of the commissioners can have a financial interest in any commission-related business. All commissioners, including the chairman, serve five-year terms with the exception of filling unexpired terms.
While the president appoints the members of the Board of Governors, they need to be confirmed by the U.S. Senate before they can assume their roles. The President of the United States can choose one of the commissioners to serve as the chairman. It's important to note that the President cannot ask a Federal Reserve Governor to resign, unlike cabinet positions.