WASHINGTON - The president has announced his intent to nominate Federal Reserve Board Governor Donald Kohn as the next vice chairman of the board for a four-year term.
Before serving on the board, Kohn served as an advisor on monetary policy and has also been secretary to the Federal Open Market Committee, the rate setting arm of the Fed. Kohn had served as a financial economist before that for the Federal Reserve Bank of Kansas City. He holds a bachelor's degree from the College of Wooster and a PhD from the University of Michigan.
"I am deeply honored that President Bush has chosen to nominate me as Vice Chairman of the Federal Reserve Board," Kohn said. "It has been a great privilege to serve with my colleagues on the Board, the Open Market Committee and the staff. I look forward to working closely with Chairman Bernanke and my other colleagues in my new role, if I am confirmed by the Senate."
The Senate Banking Committee has not yet scheduled a confirmation hearing.
Fed Chairman Ben Bernanke commented, "Governor Kohn has made crucial contributions to the work of the Federal Reserve in his more than thirty years of service. He is highly respected by his colleagues for his sound judgment, keen analytical insight, and strong leadership."
NAFCU Senior Economist Jeff Taylor noted that Kohn has hosted one of the group's annual meetings with the Federal Reserve Board governors. "I think he's a real good choice. Remember, he was also on the short list for the chairmanship as well," he said. Kohn is strong on monetary policy, but not as political as a chairman needs to be, Taylor said, which likely hurt his chances for the top spot.