📍 Proposal for new regulations for Regional FED Bank Presidents

🔸 Treasury Secretary Scott Bessent proposes a new requirement: candidates for Regional FED President must have lived in that region for at least 3 years prior to appointment.

🔸 The goal is to ensure that the leadership of each regional FED truly understands local socio-economic conditions, rather than selecting people who have spent most of their careers in New York or other financial centers and then are “assigned” to manage a local area.

🔸 This proposal does not grant direct authority to the White House, but it allows the FED Board of Governors in Washington (which includes members appointed by the President) to more easily eliminate candidates who do not meet the residency criteria.

🔸 Bessent emphasized that the change will help the FED have a more diverse perspective and avoid a few regions having too much influence in the national monetary policy-making process.

🔸 According to the information provided, Bessent believes that the residency requirement is part of an effort to “rebalance” the FED’s structure, ensuring that regional Presidents fully reflect the economic characteristics of each area—instead of simply reusing central personnel.