Reading Room Document

Status of the Chairmanship of the Federal Reserve Board If the President's Nominee Has Not Been Confirmed as Chairman Before the Incumbent's Term Expires

This document addresses the status of the chairmanship of the Federal Reserve Board in the event that the President's nominee has not been confirmed as Chairman by January 31, 1978. The conclusions reached are that the incumbent cannot hold over and continue to exercise the powers of the office as de facto Chairman, the Vice Chairman is only authorized to preside in the Chairman's absence, and the President needs to designate one of the Board members as acting Chairman. The questions presented for review include the statutory limitations concerning service during the Chairman's absence, the inherent authority of the Vice Chairman, and the Presidential designation of an acting Chairman.

January 31, 1978