Vacancies on the FOMC

I provide evidence that decreased efficiency in the appointment process to the Board of Governors of the Federal Reserve has resulted in an increase in the number of average vacancies. I then estimate whether this increase in vacancies is costly for the economy. I find little evidence to suggest that this is the case: monetary policy, uncertainty about the future path of interest rates, and the Board of Governor's ability to supervise and communicate have been largely unaffected by the number of absences.