Definition
The head of the Federal Reserve Board, who by tradition is also elected chair of the FOMC (Federal Open Market Committee) and speaks for the Fed in public.
The story
The chair is nominated by the President and confirmed by the Senate for a four-year term, and must also be a member of the Board of Governors. The chair holds the press conference after each FOMC meeting and testifies to Congress twice a year on monetary policy.
Why markets watch it
The chair's words carry more weight with markets than any other single official's.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms