U.S. Treasury Secretary Scott Bessent stated on Wednesday that he plans to advocate for a new requirement mandating that presidents of the 12 regional Federal Reserve banks must have resided in their respective districts for at least three years before being appointed to lead their banks.

Speaking at the DealBook Summit, Bessent emphasized that for candidates who fail to meet this residency threshold, their appointments would need to be vetoed by the Federal Reserve's Board of Governors in Washington.

"The Fed Chair and the Board of Governors have the final say on who the regional Fed boards can nominate," Bessent said. "Therefore, I believe we should veto any appointment unless the candidate has lived in the district for at least three years."