FINANCE BRIEF: Fed Watchdog to Review Board Role in Leader Picks

The Federal Reserve’s internal watchdog is planning to review the role of the central bank’s board in appointing and approving the leaders of the 12 regional reserve banks, several of whom have been embroiled in controversies over the past few years.

The Fed’s inspector general will evaluate “the board’s process for appointing and approving Reserve Bank leaders, including its consideration of diversity and inclusion,” according to a listing of planned projects on its website. The notice doesn’t say when the review will begin or what prompted it.

The Fed presidents have come under congressional criticism for a lack of diversity, ...