Who appoints the people who hold the bulk of power in the Federal Reserve system?
In 1913, the Federal Reserve Act created a central banking system with a balance of power between the federal government and private banks, but it gave the bulk of this power to the government by creating a central governing body with 7 members who are all nominated by the U.S. President and confirmed by the U.S. Senate. Beyond its own powers, this body can also suspend or remove any board members of the privately held regional Reserve Banks. Some people believe that private banks hold most of the power in the Federal Reserve system because a congressional commission borne of a bank panic in 1907 proposed such a plan. This was called the "Aldrich plan," but it was abandoned in 1912 when Democrat Woodrow Wilson, a founder of modern liberalism, became president of the United States.