April 26 (Reuters) - Donald Trump's allies are reported to be drafting
proposals to erode the Federal Reserve's independence if the presumptive Republican
presidential nominee regains the White House, with installing loyalists at the
central bank as a key element.
    The Fed both manages monetary policy - most notably through setting benchmark
interest rates that influence the direction of the overall economy - and is a top
U.S. bank regulator. The Trump allies drafting the plan aim to hobble its
relatively free rein on both fronts, according to the Wall Street Journal report.
    Installing policymakers who favor loyalty to Trump as president over the
institution's prized independence would be central to that effort, according to the
report. Here's a look at the Fed system's structure and how the selection of
policymakers works.
    
    THE FED SYSTEM
    The Federal Reserve System, created by Congress in 1913, comprises the
Washington-based Federal Reserve Board; 12 regional Federal Reserve banks dotted
across the country; and the Federal Open Market Committee, including both Fed board
members and regional bank heads.
    The Fed board has seven members, including an overall chair, two vice chairs -
one for monetary policy and one for bank oversight - and four other governors. All
are appointed by the president subject to confirmation by the Senate.
    Trump succeeded in appointing four board members during his presidency and
elevated Jerome Powell, who was already a governor through an appointment by
Trump's predecessor, Democrat Barack Obama, to be the Fed chair. 
    All of his successful appointees - including Powell and current governors
Michelle Bowman and Christopher Waller - have hewn to the tradition of Fed
independence. Three others who were seen by many as pushing that envelope - Steven
Moore, Judith Shelton and Herman Cain - withdrew or failed to win full Senate
confirmation.
    Each regional Fed bank is run by a president appointed by a subcommittee of
each bank's board of directors. 
    The FOMC, which has the all-important role of setting interest rate policy,
comprises all seven board governors, the president of the Federal Reserve Bank of
New York, and four other regional bank presidents on a rotating basis.
    
    THE BOARD NOW
    Fed governors are appointed by the president and confirmed by the Senate for
14-year terms, or for the unexpired remainder of a 14-year term for a previous
incumbent. Term expirations are staggered at two-year intervals, with the next one
due in 2026.
    Fed chairs and vice chairs are appointed for four-year terms that run
concurrently with their governorships, and typically do not stay on as governor if
not re-appointed to their leadership role. Powell's position as chair expires in
May 2026, and both vice chairs' positions expire during the term of the next U.S.
president.
    The following is a list of current governors, in order of their term
expirations with the nearest listed first.
 Board Member        Joined board,   Board term   Became chair /vice  Chair/ vice
                     term extended   ends         chair, reappointed  chair term
                                                                      ends
 Adriana Kugler           9/13/2023     Jan 2026                      
 Jerome Powell,          5/12/2012,     Jan 2028           2/5/2018,       May 2026
 chair                    6/14/2014                        5/23/2022  
 Christopher Waller      12/18/2020     Jan 2030                      
 Michael Barr, vice       7/19/2022     Jan 2032           7/19/2022      July 2026
 chair for                                                            
 supervision                                                          
 Michelle Bowman       11/26/2018,      Jan 2034                      
                          1/23/2020                                   
 Philip Jefferson,        5/23/2022     Jan 2036           9/13/2023      Sept 2027
 vice chair                                                                        
 Lisa Cook               5/23/2022,     Jan 2038                      
                           9/8/2023                                   
 
    THE BANK PRESIDENTS NOW
    Fed bank presidents are picked by the six non-banker members of their boards of
directors, and must be approved by the Fed Board. They can serve until the
mandatory retirement age of 65 or, if appointed after the age of 55, for 10 years
or until they reach age 75.
    The terms of all current bank presidents end in February 2026, when they will
be considered for a fresh five-year appointment by the Board of Governors. This
reupping process historically has not resulted in any change in leadership, but
this is custom not law. 
    The following is a list of the Fed regional bank presidents with the term limit
dates listed for the five whose terms will expire over the course of the term of
the next U.S. president.
 Bank           President          Expected end of term
 CLEVELAND      Loretta Mester                June 2024
 PHILADELPHIA   Patrick Harker                June 2025
 RICHMOND       Thomas Barkin                  Jan 2028
 NEW YORK       John Williams                 June 2028
 SAN FRANCISCO  Mary Daly                      Oct 2028
 ATLANTA        Raphael Bostic               After 2028
 BOSTON         Susan Collins                After 2028
 KANSAS CITY    Jeffrey Schmid               After 2028
 ST LOUIS       Alberto Musalem              After 2028
 CHICAGO        Austan Goolsbee              After 2028
 MINNEAPOLIS    Neel Kashkari                After 2028
 DALLAS         Lorie Logan                  After 2028
 
    
    

 (Reporting by Dan Burns and Ann Saphir; Editing by Andrea Ricci)