Kaleb Nygaard on the Governance of the Federal Reserve System
Macro Musings with David Beckworth
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Federal Reserve Act Requires Governors From Different Geographic Areas
In the beginning, part of the original federal reserve act required that the governors have some diversity. It was put in there for a very obvious reason to make sure that this new central bank wouldn't be just a east coast banker venture. But no one had gone back and actually looked at who these governors were and how they were related to where they were from. And it's changed over time. The first forty years or so, it's exclusively either their current job, which is most of the time what you think of when you say where you're from. In the fifties, he was assigned a district from neither where he was currently working, nor where he had ever worked in the
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