Selection and Responsibilities
Class A directors are elected by and represent the interests of the Fourth District member banks. Class B directors are also elected by member banks, but represent the public interests of agriculture, commerce, industry, services, labor and consumers. Class C directors are selected by the Board of Governors, and also represent these public interests.
Terms of Office
All three classes of directors serve three-year terms. Two Class C directors of the Bank are designated, by the Board of Governors, as chairman and deputy chairman of the board for one-year terms. Directorships generally are limited to two successive terms, to ensure a diversity of backgrounds and experience among the individuals who serve the Federal Reserve System.
Branch Bank Boards of Directors
The Cincinnati and Pittsburgh Reserve Bank Branches each have a board of seven directors who serve three-year terms. These directors are not elected; the majority are appointed by the Cleveland Fed, and the rest are appointed by the Board of Governors. The branch board of directors chairman is selected from among those appointed by the Board of Governors.
The responsibilities of directors range from the supervision of the Federal Reserve Bank of Cleveland’s operations, to making recommendations on the Bank’s discount rate. Directors appoint the Reserve Bank’s president and the first vice president, subject to approval by the Board of Governors.
Directors review their Reserve Bank’s budget and expenditures. They are also responsible for the internal audit program of the Bank. The Federal Reserve Act also requires directors to set the Bank’s discount rate every two weeks, subject to approval by the Board of Governors.