Fact Check: Does the setting of interest rates depend solely on the Fed Chair?
No
Twelve members of the Federal Open Market Committee (FOMC) vote in setting the target for the federal funds rate, which banks charge one another. Changes in this interest rate typically change interest rates charged to consumers.
FOMC voters consist of the seven Governors of the Fed (including the Chair) who comprise the Board, and five of the twelve Presidents of the regional Federal Reserve Banks. The Chair and other members of the Board are appointed by the President with the Senate’s approval. The Regional Fed Presidents are appointed by directors of their respective regional Feds.
Votes on the target federal funds rate are typically unanimous or near unanimous. Recently, however, there have been more dissents; the eight 2025 meetings had nine dissents out of a total of ninety-five votes cast, the highest number since 2013. There were two dissents in 2024 and none in 2023.
This fact brief is responsive to conversations such as this one.
Sources:
Board of Governors of the Federal Reserve System About the FOMC
Board of Governors of the Federal Reserve System Board Members
Board of Governors of the Federal Reserve System How is a Federal Reserve Bank president selected?
Federal Reserve Bank of St. Louis A History of FOMC Dissents
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