What Is the Salary of the Federal Reserve Chair?

The salary for the Chair of the Federal Reserve is set by the U.S. Congress. In 2025, the annual salary for the Fed Chair is $250,600. The yearly salary of the other Fed Governors is $225,700. The members of the Board of Governors, including the Chair, are nominated by the President of the United States and confirmed by the Senate.

Key Takeaways

• The Chairman of the Board of Governors of the Federal Reserve System is paid $250,600 (2025).
• The position is a Level I executive defined under the U.S. Code.
• The Chair of the Federal Reserve is appointed by the President and oversees the operations of the Federal Reserve.

Federal Reserve Chair Pay Explained

The Chair of the Federal Reserve is one of the top-paying government positions. It is listed in Title 5, Part III, Subpart D, Chapter 35, Subchapter II, “Executive Schedule Pay Rates.”

The Chair of the Fed is listed as a Level I executive, which means the annual salary is $250,600.

Chair of the Federal Reserve Duties

The Chair of the Federal Reserve heads the United States central banking system and is the executive officer of the Board of Governors of the Federal Reserve System. The law mandates that the Chair report to Congress twice annually on what the Fed’s movements have been with regard to monetary policy. The Chair also testifies before Congress on an array of other financial matters.

The Fed Chair meets from time to time with the President of the United States. They meet regularly with other economic and financial officials, such as the Secretary of the Treasury.

Becoming the Chair of the Federal Reserve

The Banking Act of 1935 authorizes the President of the United States to appoint seven members of the Board of Governors of the Federal Reserve System. These members must be confirmed by the Senate. From that group of appointed governors, the President nominates the Chair and the Vice-Chair. They are also subject to Senate approval.

Experience Required

The candidate for Chair of the Federal Reserve typically comes from a background in economics, although the person the President nominates can have a diverse set of experiences. For example, they may have worked in law, education, business, the military, or have held a position in a government post. 

Federal Reserve Chair Term

All seven members of the Board of Governors of the Federal Reserve System serve for 14 years in their posts. The Chair and the Vice-Chair are picked from the sitting governors, who serve in those leadership roles for four years and can be reappointed for the remainder of their 14-year terms.

The Chair of the Federal Reserve is one of the most influential government positions in the United States, and indeed, the world. Because America is an economic leader, its banking system can affect financial markets globally. For that reason, Congress holds the Chair accountable for monetary policy changes and financial system stability.

What the Federal Reserve Does

The Federal Reserve, also referred to as “the Fed,” is the central bank of the United States. The Fed’s main responsibilities are to ensure a stable economy and attain maximum employment by implementing monetary policy—the tools it uses to control long-term interest rates and the nation’s supply of money. The Fed was initiated by Congress in 1913 after President Woodrow Wilson signed the Federal Reserve Act into law.

The main reason the Fed was created was so that the nation would have a safer, more stable, and more flexible financial system. The main categories of responsibilities of the Fed are: 

• Steering America’s monetary policy in a favorable direction by influencing money and credit conditions in the U.S. economy to gain maximum employment and stable prices.
• Restraining systemic risks within the financial system.
• Providing certain financial services to U.S. financial institutions and banks.
• Operating and overseeing the country’s FedNow payment system.

How Much Do Fed Members Make?

It depends on their position. In 2025, the Chair is paid a salary of $250,600, and other board members make $225,700. Salaries for Reserve Bank presidents vary because they operate like private corporations.

Can a Fed Chair Be Fired By the President?

Federal Reserve board members can be replaced by the President “for cause.” The Fed chair is a board member, so they technically could be replaced, but they would lose their position as a board member.

Who Pay Fed Salaries?

Board members are part of the executive branch and are paid by the U.S. Treasury with funds appropriated via the budget process.

The Bottom Line

The Chair of the Federal Reserve is one of the highest-paid positions in the government because the Chair is responsible and accountable for the day-to-day operations of the Fed, in addition to being a member of the Board of Governors.