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Friday, February 10, 2006

Kevin Who?

I agree. Who is this guy and what qualifies him to serve on the Federal Reserve Board of Governors?:

Bush's Nomination of Warsh to Fed Draws Criticism, Bloomberg: Most of President George W. Bush's nominees to the Federal Reserve have earned accolades from across the economic and political spectrums. And then there's Kevin Warsh. Bush's nomination of the 35-year-old White House aide -- a lawyer by training who would become one of only two members of the Fed's seven-member board of governors without a Ph.D. in economics -- has been greeted by criticism and bewilderment by some former Fed officials and economists. They point to his political connections and inexperience, and say the White House could have found a better-known, more qualified choice.

"Kevin Warsh is not a good idea,'' said former Fed Vice Chairman Preston Martin, who was appointed by Republican President Ronald Reagan in 1982. "If I were on the Senate Banking Committee,'' which must approve Fed nominees, "I would vote against him.'' ...

The nomination of Warsh, who has been executive secretary of the president's National Economic Council, was one of two that Bush made ... to fill vacancies on the Fed. The other nominee, Randall Kroszner, 43, is a University of Chicago professor and a former Fed visiting scholar with a doctorate in economics from Harvard University.

"Kroszner is a distinguished academic,'' said former governor Edward Gramlich, who left the Fed in August. "The other one, Kevin, I don't know.'' Martin said that "Kroszner is absolutely at the top of the list.'' If Warsh and Kroszner are confirmed, Bush will have appointed all seven members of the Fed board. ...

Warsh is married to Jane Lauder, a granddaughter of cosmetics pioneer Estee Lauder; Jane Lauder's father, Ronald Lauder, was U.S. ambassador to Austria under Reagan and has donated $104,000 to the Republican National Committee since the 2000 election campaign...

If both Warsh and Kroszner are confirmed, said Fed-watcher Schlesinger, "for the first time in recent decades, and maybe the first time ever, the board would include three governors who recently served in the administration that appointed them.'' That, he said, "unavoidably make the board a more political cast.'' ...

    Posted by on Friday, February 10, 2006 at 09:33 AM in Economics, Monetary Policy, Politics | Permalink  TrackBack (4)  Comments (20)

          

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