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The Federal Reserve System operates under a seven-member Board of Governors

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The Federal Reserve System operates under a seven-member Board of Governors. The term of a governor is fourteen years, and governors usually cannot serve more than one term (except for an additional partial term to fill a vacancy—reference Greenspan’s terms). Terms are staggered, so that one governor’s term expires every other year. Governors can only be removed from office “for cause”—that is, for abuse of their office and not just for policy disagreements. In what way do the long terms and secure tenure of Federal Reserve governors help to overcome the problem of time-inconsistency in monetary policy? In practice, Fed governors rarely serve out their full fourteen-year term. Is that a problem? Discuss.