Fed board approves reappointment of most regional presidents

The Federal Reserve Board of Governors on Thursday approved the reappointment of 11 of the 12 presidents of regional Fed banks — the one exception reflecting a previously announced retirement.

Why it matters: There had been speculation among central bank watchers that this every-five-years reappointment process could involve more fireworks than usual, as Trump appointees to the board seek major change to the nation's central bank.

• Atlanta Fed president Raphael Bostic recently announced his retirement at the conclusion of his term in February, but his 11 counterparts around the country were green-lit for another term.

Driving the news: "Following a comprehensive review by the boards of directors of the regional Reserve Banks, and the unanimous concurrence of Federal Reserve Board members," the Fed announced reappointment of the 11 bank presidents.

• The action also includes reappointment of the banks' first vice presidents, who act as chief operating officer of the banks and fill in if the president is unavailable.

Of note: The mention "unanimous concurrence" of governors implies that the three Trump-appointed governors were on board with the reappointments.

Catch up quick: Presidents of the 12 reserve banks serve in an unusual hybrid public-private structure. They are selected by independent boards of directors consisting of local community members, with appointments that must be approved by the presidentially appointed Board of Governors in Washington.

• They have significant management and operational responsibilities, and have a rotating vote on monetary policy as part of the interest rate setting Federal Open Market Committee (the New York Fed chief has a permanent vote).
• They serve five-year terms that all end in February of years ending in "1" and "6," meaning that their terms are up early next year.