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Monday, April 10, 2006

Mishkin a Candidate to Replace Ferguson as Fed Governor, Vice Chairman

This would be a very good choice, especially when compared to other recent appointments to the Federal Reserve Board of Governors:

Columbia Economist Is Considered for Fed Board, by Greg IP, WSJ: Frederic Mishkin, an economist at Columbia University and former senior staffer at the Federal Reserve Bank of New York, is being considered as a governor and possibly the vice chairman of the Federal Reserve Board, people familiar with the matter said.

If appointed, Mr. Mishkin would beef up the Fed's monetary-policy expertise after a series of appointments by the Bush administration tilted the composition of the seven-member board toward financial-industry experts... The people familiar with the matter cautioned that other candidates to succeed Mr. Ferguson, in particular for the vice chairman's spot, may be under consideration and an announcement doesn't appear to be imminent. A White House spokesman said he was unable to comment.

The administration could nominate a sitting governor as vice chairman. Fed watchers consider the leading internal candidates to be Donald Kohn, a macroeconomist who spent many years as a senior staffer before becoming governor, and Susan Bies, a former banker who is the board's lead governor on bank-regulatory matters. Both governor and vice chairman are subject to Senate confirmation. Mr. Mishkin's possible candidacy was reported by Reuters last week. Yesterday, Mr. Mishkin declined to comment.

Separately, the Federal Reserve Bank of Philadelphia is looking at several Wall Street economists as potential successors to its most recent president, Anthony Santomero, who recently stepped down, several people familiar with the matter said. ...

Mr. Mishkin would likely also be an influential policy maker. He has taught at Columbia University's Graduate School of Business since 1983, specializing in monetary policy, banking and finance. He has written numerous books and papers; a recent specialty is inflation targeting. He served as research director at the Federal Reserve Bank of New York from 1994 to 1997, attending meetings of the policy-setting Federal Open Market Committee. ...

He is also close to Mr. Bernanke ... The two have co-authored several papers, a book on inflation targets and one op-ed in The Wall Street Journal.

The Fed vice chairman's main statutory duty is to chair the board in the chairman's absence. ... Beyond that, his influence depends on cultivating a good relationship with the chairman... Mr. Mishkin's long acquaintance with Mr. Bernanke suggests they too will work well together, even though there is considerable overlap in their backgrounds. Mr. Mishkin doesn't appear to be politically active. The Center for Responsive Politics, which tracks political giving, has no record of any political donation by him to either party as far back as 1990.

    Posted by on Monday, April 10, 2006 at 01:21 AM in Economics, Monetary Policy, Politics | Permalink  TrackBack (0)  Comments (1)

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