Is the Federal Reserve (The Fed) a private entity, not controlled by us?

Part of How Money Works – FAQ

The Fed is a public-private partnership, but monetary policy is determined from the top.

Governance

Fed Board of Governors: all 7 members appointed by the President of the United States.

Fed Open Market Committee: 12 members, 7 of which are the Board of Governors, 5 rotating members elected from among the Federal Reserve Bank presidents.

How are those presidents chosen? By the Federal Reserve Bank boards of directors.

How are those boards of directors chosen? Each board has nine members, 3 each of class A, class B and class C. Class A directors are appointed by the Board of Governors. The other 6 are elected by the member banks.

So roughly, 1/3rd of the power to elect the 5 rotating members of the FOMC rests with the government appointed BOG. 2/3rd comes from the member banks. But all 7 non-rotating members of the FOMC are the Presidentially appointed appointed Board of Governors. So it looks to me like:

The total government input into the FOMC is (1/3)*5 + 7 = 8.67; while the total non-government, member bank input is (2/3)*5 = 3.33.

Via Dan Kervick