Final answer:
Board of Governors of the Federal Reserve have longer terms to maintain economic stability and independence from short-term political pressures, ensuring continuity in monetary policy and focusing on long-term economic objectives.
Step-by-step explanation:
The members of the Board of Governors of the Federal Reserve are required to have longer terms in office to ensure that they can make decisions with a degree of independence from the political pressures often faced by elected officials.
Longer terms provide stability and continuity in monetary policy, which is crucial for maintaining economic confidence and preventing short-term political influences from affecting long-term economic planning. The Federal Reserve's policy decisions on interest rates, banking regulations, and the overall monetary policy have significant implications for the economic health of the nation and, by extension, the global economy.
Thus, longer terms shield its members from the fluctuations of political cycles and enable them to focus on their mandate to promote maximum employment, stable prices, and moderate long-term interest rates.
Board of Governors' long tenure contrasts with shorter-term political positions like the President, who may face pressures to enact policies that yield immediate results but aren't necessarily in the best interest of long-term economic stability.
By having terms that are staggered and longer than those of the President and Congress, the Board can pursue policies that might not have immediate political rewards but are beneficial over the long run. This is crucial for maintaining the Federal Reserve's credibility and effectiveness in fulfilling its economic objectives.