Fed appoints regional bank board chairs and vice chairs

• Regional bank board positions include executives from major corporations like Emerson Electric and Liberty Mutual Insurance, as well as leaders from small businesses and non-profits
• Fed bank directors meet regularly with policymakers to share their views on the economy, which directly influences the Fed's rate-setting decisions
• The appointments establish leadership for all 12 Federal Reserve regional banks for the current year

Summary

The Federal Reserve Board announced the chairs and vice chairs of its 12 regional banks for 2026 on Friday, January 9. Key appointments include Lal Karsanbhai, CEO of Emerson Electric Co., who will chair the St. Louis Fed, and Tim Sweeney, CEO of Liberty Mutual Insurance, who will serve as deputy chair of the Boston Fed.

The appointed board members represent a diverse range of leadership backgrounds, including former CEOs of major corporations alongside heads of small businesses and non-profit organizations. These regional Fed bank directors play an important role in the Federal Reserve system by meeting regularly with Fed policymakers to share insights on economic conditions.

Market Implications:

The boards' perspectives on the economy directly inform the Fed's monetary policy decisions and rate-setting deliberations. This gives the appointed chairs and vice chairs significant influence in shaping the central bank's understanding of regional economic trends and business conditions across the country.

The announcement comes as U.S. household wealth reached a record high of over $180 trillion in Q3 2025, driven by an AI-fueled stock market rally and rising home prices, according to separate Fed data released the same day.

The composition of these boards, drawing from both major corporations like Emerson Electric and Liberty Mutual Insurance as well as smaller enterprises, is designed to provide policymakers with a comprehensive view of economic activity across different sectors and business sizes. This diverse input is particularly valuable as the Fed navigates monetary policy decisions in the current economic environment.