Bessent calls for change in how regional Fed presidents are chosen

 U.S. Treasury Secretary Scott Bessent on Wednesday called for a change in how regional Federal Reserve president are selected, amid his broader effort to reshape leadership at the monetary authority.

The 12 Fed district bank chiefs "were meant to be from their district,” Bessent said in a discussion at the New York Times DealBook Summit. Now, “there’s this idea of importing a bright, shiny object.”

He said he will "start advocating going forward, not retroactively, that regional Fed presidents must have lived in their district for at least three years," a proposal that may require approval from Congress. Bessent reiterated a recent claim that three Fed presidents do not meet his standards.

Under the current selection process, regional Fed presidents are picked by their bank's board and then must be approved by the Fed's board of governors in Washington. They serve five-year terms, which can be renewed multiple times.

In a CNBC interview last week, Bessent said the Fed needs to streamline its operations, arguing that its approach to overseeing money markets has grown more complex than it needs to be.

https://www.msn.com/en-us/money/markets/bessent-calls-for-change-in-how-regional-fed-presidents-are-chosen/ar-AA1REa8x