Federal Reserve Watchdog Launches Probe into Regional Bank Personnel Renewal Process

Odaily Odaily reports that the internal watchdog of the Federal Reserve announced on Wednesday it will conduct a comprehensive review of the renewal process for senior executives at regional banks, focusing on the full procedure by which the Fed Board of Governors approves the five-year term renewals of regional bank presidents and their deputies.

This evaluation will not only check the procedural compliance against the Fed's own administrative regulations and industry standards, but will also review executive performance appraisal materials and examine whether the various files used to determine renewal qualifications are complete and standardized. The Office of the Inspector General did not provide a specific reason for launching this investigation.

Previously, U.S. President Donald Trump frequently pressured the Federal Reserve, drawing increased market attention to regional bank personnel arrangements. Many observers worry that this renewal mechanism could be exploited to sideline regional policymakers who do not support interest rate cuts. (Jinshi)