Federal Reserve Board, Definition
The governing body of the Federal Reserve System. The seven members of the Board of Governors are appointed by the president, subject to Senate confirmation, and serve 14-year terms. The board sets Fed policy regarding the discount rate and reserve requirements. The 7-member Board of Governors that oversees Federal Reserve Banks, establishes monetary policy (interest rates, credit, etc.), and monitors the economic health of the country. Typically, the Chairman of the Board of Governors is also the Chairman of the FOMC.