Chair of the Federal Reserve Facts for Kids

Quick facts for kids Chair of the Board of Governors of the Federal Reserve System
Seal of the Board of Governors
Flag of the Federal Reserve System
Incumbent Kevin Warsh since May 22, 2026
United States Federal Reserve System
Style	Mr. Chairman
Member of	Board of Governors Open Market Committee
Reports to	United States Congress
Seat	Eccles Building Washington, D.C.
Appointer	The president with Senate advice and consent
Term length	Four years, renewable (as chair) 14 years, non-renewable (as governor)
Constituting instrument	Federal Reserve Act
Formation	August 10, 1914; 112 years ago (1914-08-10)
First holder	Charles Sumner Hamlin
Deputy	Vice Chair of the Federal Reserve
Salary	Executive Schedule, Level I

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The Chair of the Federal Reserve is a very important leader in the United States. Think of the Federal Reserve, often called the "Fed," as the country's central bank. Its main job is to keep the U.S. economy healthy and stable. The Chair is the main person in charge of the Board of Governors, which is a group that makes big decisions about money in America.

This leader helps guide the country's money policies. This means they help decide things like how much money is in circulation and how easy or hard it is to borrow money. These decisions affect everyone, from families buying homes to businesses creating jobs.

The President of the United States chooses the Chair, and the United States Senate must agree with the choice. The Chair serves for four years and can be chosen again for more terms. The longest-serving Chair was William McChesney Martin, who led the Fed for almost 19 years. Alan Greenspan was the second longest, serving for over 18 years.

How is the Chair Chosen?
What Does the Chair Do?
Why Rules are Important
How Much Does the Chair Earn?
A Look Back at Past Chairs
Images for kids
See also

How is the Chair Chosen?

The President of the United States picks the person who will be the Chair. This person is usually already a member of the Federal Reserve's Board of Governors. Before they can start, the United States Senate has to approve the President's choice. A special group in the Senate, called the Senate Committee on Banking, Housing, and Urban Affairs, carefully checks if the person is right for the job.

Once approved, the Chair serves a four-year term. They can be chosen again for more terms if the President nominates them and the Senate agrees.

Four former Chairs of the Federal Reserve (from left to right): Janet Yellen, Alan Greenspan, Ben Bernanke, and Paul Volcker. This photo was taken in 2014.

What Does the Chair Do?

The Chair of the Federal Reserve has many important jobs. They lead the meetings of the Board of Governors. If the Chair is not there, the Vice Chair takes over.

The Board, led by the Chair, studies how the economy is doing both in the U.S. and around the world. They also watch over and set rules for the different Federal Reserve Banks. These banks help keep our country's money system working smoothly. The Board also helps protect consumers by making sure credit laws are fair.

The Chair also leads a special group called the Federal Open Market Committee (FOMC). This committee makes key decisions about the country's short-term money policies. Even though the rules say any member could lead this committee, it has always been the Federal Reserve Chair.

Twice a year, the Chair talks to the United States Congress about the Fed's plans for the economy. They also answer questions from Congress about money matters. The Chair also meets with the United States Secretary of the Treasury, who is a top advisor to the President.

Why Rules are Important

To make sure the Chair and other members of the Federal Reserve Board are fair and unbiased, there are special rules. These rules say that they cannot work for any other bank or own shares in any bank while they are serving on the Board. This helps them make decisions that are best for the whole country, not just for one bank or company. Before starting their job, they must promise that they follow these rules.

How Much Does the Chair Earn?

Being the Chair of the Federal Reserve is a very important job, and it comes with a good salary. The Chair earns about US$246,400 per year. This is a standard salary for top government officials in the United States.

A Look Back at Past Chairs

The Federal Reserve System started in 1914. In the very beginning, the United States Secretary of the Treasury (the person in charge of the government's money) also acted as the head of the Federal Reserve. This changed in 1935 with a new law. After that, the leader of the Federal Reserve Board became known as the Chair, just like today.

Many different people have served as Chair of the Federal Reserve. They come from various backgrounds, including bankers, lawyers, and economists. For example, William McChesney Martin served for the longest time, from 1951 to 1970. Alan Greenspan was another long-serving Chair, from 1987 to 2006.

Today, the Chair is Kevin Warsh, who started his term on May 22, 2026. He is an investment banker and financier. Other recent Chairs include Jerome Powell, Janet Yellen, and Ben Bernanke. Each Chair plays a vital role in guiding the country's economy.