WASHINGTON — Citigroup chairman and chief executive officer Sanford I. Weill was elected to the board of directors of the Federal Reserve Bank of New York on Wednesday, the banking company announced.

Mr. Weill assumes the seat formerly held by retired Chase Manhattan chairman Walter V. Shipley, and will serve a three-year term beginning this month. Mr. Weill will become one of the bank’s class A directors, who are elected by the member institutions in the Second Federal Reserve District.

The bank’s board members indirectly influence monetary policy by setting the District’s discount rate and by appointing the bank’s president, who sits on the Federal Open Market Committee. They also approve the bank’s budget, oversee its operations, and appoint its officers.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.