Final answer:
The Federal Reserve is led by a Board of Governors, which consists of seven members appointed by the President and confirmed by the Senate, serving staggered 14-year terms.
Step-by-step explanation:
The Fed, formally known as the Federal Reserve, is overseen by a Board of Governors. This governance structure includes seven individuals appointed by the President and confirmed by the Senate. These governors serve 14-year terms, arranged in a staggered manner to ensure a term expires every other year on January 31st. The design is intended to provide insulation from political pressure, allowing the governors to focus on policy decisions based on economic factors.
Importantly, the Fed operates independently from Congress, with the President unable to demand a governor's resignation as with other political appointments. The Board of Governors consists of seven members who are appointed for 14-year terms. The purpose of the Board of Governors is to make policy decisions based on their economic merits and to insulate decision-making from political pressure.