The Federal Reserve (FED) plays an important role in the US financial system, is the agency that makes key decisions and has a major influence on the global financial situation. After more than 100 years of establishment, the FED has experienced many economic and monetary policy fluctuations with 16 different presidents. Let's find out information about the 16 presidents of the Fed through the following article.
Who is behind the FED?
The Federal Reserve System (FED) began operating in 1913, based on the Federal Reserve Act of the United States Congress passed on December 23 of the same year. The FED was established with the main purpose of responding to financial market fluctuations, especially the serious crisis of 1907.
The FED is completely independent and not dependent on or influenced by the US government. This is also the only organization in the world allowed to print USD currency. The FED plays an important role in planning and adjusting monetary policies , so every decision of the FED related to interest rates and money supply will have a direct impact on the market.
What powers does the Fed Chairman have?
The FED has quite broad powers, helping to ensure financial stability and banks that are members of the Federal Reserve System will be regulated by the FED. The agency is considered the "place of last resort" to borrow money when the member organization has nowhere else to borrow from. Therefore, the FED is also responsible for providing services related to financial issues for organizations (valuable asset management, foreign organizations, organizations belonging to the US government). In addition, the FED also plays an important role in operating the US spending system.
The Chairman of the Fed is considered the "most powerful person on the planet" because he or she is the person who runs the most important agency of the world's largest economy, and has enough ability to govern and intervene in the rhythm of the economy. global economic fluctuations.
Since its establishment, the FED has operated under the direction of 16 presidents. One of them is Mr. Ben Bernanke - known as one of the talented presidents who helped revive the US economy during the 2009 crisis.
During his term in 2009, Mr. Bernanke created a miracle for the economy by injecting a "huge" amount of money into the US banking industry. His action was praised by the press as having laid a solid foundation to help the US economy return to a stable state, as well as bring the global economy out of the crisis.
Portraits of 16 Fed presidents
The Fed has had 16 presidents and the current incumbent is Mr. Powell.
Charles S. Hamlin - Term 1914-1916
Charles S. Hamlin was the first chairman of the Federal Reserve, taking office on August 10, 1914 and serving as chairman until August 9, 1916. He then remained a member of the Board of Directors until February 1936, and continued to serve as a special advisor until his death on April 24, 1938.
Hamlin was born in Boston in 1861 and graduated from Harvard University in 1886 with three degrees: bachelor's, master's, and law degree. He also received two honorary doctorate of law degrees from Washington and Lee University (1895) and Columbia University (1938).
Hamlin's legal career began in Boston from 1886 - 1893 and 1898 - 1913. During this time, he was twice appointed assistant Secretary of the Treasury, serving from 1893 - 1897 and from 1893 to 1897. 1913 - 1914. Hamlin was appointed to head the first Federal Reserve Board at the recommendation of Secretary of the Treasury William McAdoo and appointment by President Woodrow Wilson.
Although not considered an active operator, Hamlin demonstrated diplomatic ability through his deft handling of power struggles and political differences within the Federal Reserve. He also shaped the organizational structure to assist the Board in achieving its goals under the Federal Reserve Act. However, he adopted a rather passive approach, leaving the main policy decisions to the Ministry of Finance.
William PG Harding - Term 1916-1922
William PG Harding served on the Board of Governors of the Federal Reserve System from August 1914 to August 1922. He was also the third governor of the Federal Reserve Bank of Boston, serving from January 1923 to April 1930.
Harding was born in Boligee, Alabama, in 1864, and received his bachelor's and master's degrees from the University of Alabama in 1880 - 1881, becoming the youngest official graduate in the university's history.
Portrait of Fed Chairman William PG Harding.
In August 1914, Harding joined the Federal Reserve System and was appointed a member of the new Federal Reserve Board of Governors in Washington, DC. He continued to serve as second governor (chairman) from August 1916. During this period, he was also managing director of the War Finance Corporation from 1918 - 1919. Ending in 1922, he was asked to go to Cuba to advise the Cuban government on the reorganization of the financial and accounting system, at the request of the President of Cuba.
Harding was an advocate of increasing the member banks' share of earnings through declaring larger dividends. He is considered a key figure in the early years of the Federal Reserve System and in 1925 he wrote the book "The Formative Years of the Federal Reserve System".
Daniel R. Crissinger - Term 1923-1927
Daniel R. Crissinger was the third president of the Fed, born in Marion County, Ohio, in 1860, appointed chairman of the Federal Reserve on May 1, 1923, and resigned on September 15 /1927. He received his bachelor's degree from Buchtel College.
In 1886, Crissinger began his legal career in Marion, Ohio. He was prosecutor for two terms and city attorney for three terms. After his time as city attorney, he was general counsel for the Marion Steam Shovel Co. for 22 years. He also oversaw City National Bank of Marion, which later became National City Bank & Trust Co.
3rd Chairman of the Fed: Daniel R. Crissinger.
Crissinger served as Comptroller of the Currency before becoming Chairman of the Federal Reserve Board. Although some later presidents focused on promoting economic growth, he took a more traditional approach, focusing on making credit easily available through lower interest rates.
Roy A. Young - Term 1927-1930
Roy A. Young, born in Marquette, Michigan, in 1882, had a career spanning 25 years in three different divisions of the Federal Reserve System. He was the third president of the Federal Reserve Bank of Minneapolis and the fourth president of the Federal Reserve Bank of Boston. He also served as chairman of the Board of Governors of the Federal Reserve System between terms as chairman of the Reserve Bank.
Young began his banking career early, working as a messenger for First National Marquette Bank at the age of eight. He later became an assistant cashier at Marquette National Bank and then owner of his original company, First National Bank. In 1913, he joined Citizens National Bank as vice president.
In 1919, Young became president of the Federal Reserve Bank of Minneapolis and in September 1927, President Coolidge appointed him governor of the Federal Reserve in Washington, DC. During the stock market crash of 1929 and the Great Depression, Young focused on strengthening the banking system rather than influencing monetary policy.
In 1930, he moved on to become president of the Boston Fed and served until 1942, when he resigned to become president and later chairman of the board of Merchants National Bank in Boston.
Eugene Meyer - Term 1930-1933
Eugene Isaac Meyer, born in Los Angeles, California in 1875, was chairman of the Federal Reserve Board from September 16, 1930 to May 10, 1933. After receiving his bachelor's degree and juris doctorate at Yale University, Meyer began his business career.
In 1901, he founded the Eugene Meyer Jr. brokerage firm. and Co., focusing primarily on investment banking. He also had interests in various industries such as railroads, oil, copper and automobiles.
Meyer entered politics and government service in 1917 when he assisted the Raw Materials Commission in procuring copper for the armed forces. In 1918, he was appointed by President Wilson as a director of the War Finance Corporation, and he served until 1920 when its operations were suspended. President Calvin Coolidge then appointed him a member of the Federal Farm Loan Board in 1927. Meyer resigned in 1929 and was appointed by President Hoover to head the Federal Reserve Board the following year.
As president, Meyer advocated open market purchases and pushed for banking system reform, including a unified commercial banking system allowing only nationally licensed banks . He also advocated government intervention, such as buying surplus cotton to support cotton prices.
Eugene R. Black - Term 1933-1934
Eugene R. Black, born in Atlanta, Georgia, in 1873, was appointed chairman of the Federal Reserve on May 19, 1933 and resigned on August 15, 1934. After receiving his undergraduate degree, with a degree from the University of Georgia and a law degree from Atlanta Law School, Black began his career as a lawyer and had various assignments in the financial sector.
Black held numerous positions within the Federal Reserve System, including class A director of the Federal Reserve Bank of Atlanta and district governor for that district. He was appointed to the Federal Reserve Board and later became chairman of the Board of Directors during a critical period of the Great Depression.
During his tenure as president, Black advocated policies aimed at restoring confidence in the banking system, including lending of last resort to solvent banks and the establishment of the Reconstruction Finance Corporation. He also pushed to restart open market operations, using buying and selling securities to increase cash flow and credit in the banking system. However, he opposed President Franklin Roosevelt's call to surrender the Federal Reserve System's gold to the United States Treasury.
Marriner S. Eccles - Term 1934-1948
Marriner S. Eccles, born in Logan, Utah, in 1890, was a prominent politician and banker who played an important role in the history of the Federal Reserve System.
After attending Brigham Young College, Eccles underwent a missionary experience in Glasgow, Scotland, for The Church of Jesus Christ of Latter-day Saints. Before starting his political career, he succeeded in preventing the collapse of his bank in 1931.
In 1933, Eccles was appointed chairman of the Federal Reserve by President Franklin D. Roosevelt. He played a key role in restructuring the Federal Reserve System through the Banking Act of 1935. This act introduced fundamental changes, including the creation of the Board of Governors and increased government's power to manage the economy.
Eccles continued to serve on the Federal Reserve Board and as chairman until 1948. He left a lasting mark with the measures and policies he promoted to meet the challenge of the Great Depression. recession and major economic challenges.
Thomas B. McCabe - Term 1948-1951
Thomas B. McCabe, who served as Chairman of the Board of Governors of the Federal Reserve System from 1948 to 1951, played an important role in the history of this central bank.
McCabe's career in politics began when he worked for the Roosevelt administration and after the war, he held several important positions, including deputy director of priority distribution for the Office of Product Management. export and is a member of the business advisory council of the Ministry of Commerce.
In 1948, he returned to Scott Paper Company and was simultaneously appointed Chairman of the Board of Governors of the Federal Reserve by President Harry Truman. During this time, he strongly supported the independence of the Federal Reserve System.
Amid the dispute between the Federal Reserve and the Treasury over interest rate policy and credit restrictions in 1949–1950, McCabe joined the committee Truman established to reach a compromise. The resulting Treasury-FED Agreement, signed on March 3, 1951, strengthened central bank independence and laid the foundation for the Fed's modern monetary policy.
William McChesney Martin, Jr. - Term 1951-1970
William McChesney Martin Jr. served as Chairman of the Board of Governors of the Federal Reserve System from 1951 to 1970, serving under five different presidents. Martin has had a deep connection to the Fed throughout his life and has contributed much to the country's monetary policy.
In 1951, President Truman appointed Martin as Chairman of the Board of Governors of the Fed. Under his watch, Martin was famous for his tightening monetary and anti-inflation policies. He especially emphasized the importance of statistics in making policy decisions, and he promoted the Fed's flexibility and discretion in policymaking.
In 1956, Martin famously described the Fed's purpose as "relying on the winds of deflation or inflation, whichever way they blow." Under Martin, the Fed became more independent and flexible, and he gained a reputation as a leader capable of listening to opposing opinions without losing the Fed's independence.
In 1965, Martin clashed with President Lyndon Johnson over the discount rate, setting off a clear demonstration of Fed independence.
Arthur F. Burns - Term 1970-1978
Arthur F. Burns served two consecutive terms as Chairman of the Board of Governors of the Federal Reserve System, from January 31, 1970 to March 8, 1978. He had a diverse career before upon joining the Fed, including teaching and key positions in the field of economic and political research.
Arthur F. Burns was born in 1904 in Stanislau, Austria, and immigrated to the United States at the age of 10. He received his bachelor's, master's, and doctorate degrees from Columbia University. After completing his doctorate, he taught at Rutgers University for more than a decade before returning to Columbia University to teach in 1941.
Before becoming Chairman of the Fed's Board of Governors, he was an advisor to the president. Burns assumed leadership of the Federal Reserve in the midst of what came to be known as the Great Inflation (1965–82). Loose monetary policy during this period played a role in driving up inflation and inflation expectations.
However, the slow response of policymakers when inflation increased led to an economic recession. Burns later observed that in "a rapidly changing world, the opportunities for mistakes are endless."
G. William Miller - Term 1978-1979
G. William Miller was Chairman of the Board of Governors of the Federal Reserve System from March 8, 1978 to August 6, 1979. Before joining the Board of Governors, he was a class B director at the Federal Reserve System. Boston Federal Reserve Bank.
Miller was born in 1925 in Sapulpa, Oklahoma. He graduated from the United States Coast Guard Academy with a bachelor's degree in marine engineering. He then received a law degree from the University of California at Berkeley School of Law.
As Chairman of the Board of Governors, Miller was known for his expansionary monetary policies. Unlike some of his predecessors, Miller focused less on fighting inflation and instead on promoting economic growth even if it led to inflation. Miller said the Federal Reserve should take measures to encourage investment instead of combating rising prices. He believes that inflation is caused by many factors beyond the control of the Board of Directors.
Paul A. Volcker - Term 1979-1987
Paul A. Volcker became Chairman of the Board of Governors of the Federal Reserve System on August 6, 1979. He was reappointed to a second term on August 6, 1983 and served until August 1987. Volcker was born in 1927 in Cape May, New Jersey. He received a bachelor's degree from Princeton University and a master's degree from Harvard University's School of Public Administration.
In August 1975, Volcker was appointed president of the Federal Reserve Bank of New York. There he actively participated in monetary policy decision-making and became a proponent of monetary restraint.
Paul A. Volcker.
After inflation spiked from 1978 to 1979, President Jimmy Carter shuffled his economic policy team and nominated Volcker to chair the Board of Governors.
During his first term, Volcker focused on reducing inflation and conveying to the public that rising interest rates were the result of market pressure and not Board action. He increased the discount rate by 0.5% immediately after taking office. Volcker also monitors the debt crisis in developing countries and advocates expanding the International Monetary Fund's reserves.
During his second term, Volcker made expanding the money supply without increasing inflation his top priority. He also paid more attention to structural reforms of the Board of Governors, including protecting the Federal Reserve's regulatory authority and limiting activities considered risky by commercial banks. Volcker opposed allowing commercial banks the ability to underwrite corporate securities and participate in real estate development.
Alan Greenspan - Term 1987-2006
Alan Greenspan served five terms as Chairman of the Board of Governors of the Federal Reserve System. He initially assumed the presidency on August 11, 1987, to serve an unexpired term as a member of the Board of Governors. His final term ended on January 31, 2006. He was appointed president by four different presidents.
Greenspan was born in New York City. He received his bachelor's degree (summa cum laude), master's degree, and doctorate in economics, all from New York University. Before receiving his doctorate, he studied economics at Columbia University in the early 1950s under Arthur Burns, who later became chairman of the Board of Governors.
Soon after taking office as Chairman of the Board of Governors, Greenspan faced the stock market crash of October 1987 and acted quickly to ensure liquidity in the market. During his tenure, he also led the Federal Reserve through several events that had major economic consequences, including two U.S. recessions, the 1997 Asian financial crisis, and the 1997 Asian financial crisis. terrorist attacks on September 11, 2001.
He was known as a strong anti-inflationist, focusing more on controlling prices than promoting full employment. Many believe that Greenspan facilitated the longest official economic expansion in United States history. He is also known for his skill in building consensus among members of the Federal Open Market Committee on policy issues.
Ben Bernanke - Term 2006-2014
Ben Bernanke began his second term as Chairman of the Board of Governors of the Federal Reserve System in February 2010. He initially took office as chairman in February 2006, when he also began begins a 14-year term as a member of the Board of Governors. His second term as chairman ended in January 2014 when Janet Yellen succeeded him.
Bernanke was born in Augusta, Georgia and raised in Dillon, South Carolina. He received a bachelor's degree in economics in 1975 from Harvard University (summa cum laude) and a doctorate degree in economics in 1979 from the Massachusetts Institute of Technology.
As chairman of the Board of Directors, Bernanke led the Federal Reserve's response to the 2006–10 financial crisis and the Great Recession. During his tenure, the Federal Reserve took unprecedented steps to implement quantitative easing, a process in which the central bank purchases billions of dollars in mortgage-backed securities and bonds. long-term treasury bills to stimulate economic growth.
Bernanke is also credited with enhancing the Federal Reserve's transparency and communications by holding quarterly press conferences to explain the decisions of the Federal Open Market Committee, providing direction leads on short-term interest rates and adopts an official inflation target of 2%.
Janet Yellen - Term 2014-2018
Janet L. Yellen took office as Chair of the Board of Governors of the Federal Reserve System in February 2014, for a four-year term ending on February 3, 2018.
Yellen graduated magna cum laude from Brown University with a degree in economics in 1967. She received her doctorate in economics from Yale University in 1971. From 1971 to 1976, she was an assistant professor at Harvard University. From 1977 to 1978, she worked for the Board of Governors as an economist, before joining the faculty of the London School of Economics and Political Science (1978–80).
Mrs. Janet Yellen.
Yellen is a professor emeritus at the University of California at Berkeley, where she has been a faculty member since 1980. During her time there, she was also the Eugene E. and Catherine M. Trefethen Professor of Business and Professor of Economics.
Yellen left Berkeley for five years starting in August 1994. She served as a member of the Board of Governors until February 1997 and then left the Council to become chair of the Council of Economic Advisers until February 1997. August 1999. She also chaired Economic Policy. Committee of the Organization for Economic Cooperation and Development from 1997 to 1999. Yellen served as president and chief executive officer of the Federal Reserve Bank of San Francisco (2004–10) and as vice chair of the Board of Governors. governor (2010-14) before being appointed chairman.
She received several academic honors during her career. These include Yale's Wilbur Cross in 1997, an honorary doctorate of laws from Brown in 1998, and an honorary doctorate of humane letters from Bard College in 2000.
Jerome Powell - Term 2018-present
Powell was born in Washington, D.C. He received a bachelor's degree in politics from Princeton University in 1975 and a law degree from Georgetown University in 1979. While at Georgetown, he was editor-in-chief of the Georgetown Law Review.
Powell served as assistant secretary and undersecretary of the Treasury under President George HW Bush. Here, he is responsible for policy across financial institutions, Treasury debt markets and related areas. Before joining government, he worked as a lawyer and investment banker in New York City.
Prior to his appointment to the Board of Governors, Powell was a visiting scholar at the Bipartisan Policy Center in Washington, DC, where he focused on federal and state fiscal issues. From 1997 to 2005, Powell was a partner at the Carlyle Group.
In addition to his roles on corporate boards, Powell also serves on the boards of educational and philanthropic organizations, including the Bendheim Center for Finance at Princeton University and the Washington Nature Conservancy, D.C. and Maryland.
He is known as the man who changed the FED forever. Under his tenure, many policies were passed to bring the US economy to a state of balance as well as bring the unemployment rate in the country back to its lowest level ever.
