WASHINGTON-Federal Reserve Board Governor Edward M. Gramlich announced his resignation last week from the board as of August 31, 2005. He joined the board as an appointee of former President Bill Clinton in November 1997 and his term runs through January 31, 2008. Gramlich is leaving the Fed to become the Richard A. Musgrave Collegiate Professor in the Gerald R. Ford School of Public Policy at the University of Michigan, teaching in that program and in the new Michigan in Washington Program. He will also hold a part-time appointment as Senior Fellow at the Urban Institute. "It has been a great privilege to serve the country as a member of the Board of Governors of the Federal Reserve System." Gramlich wrote in his letter of resignation to President George W. Bush. "During my time here I believe we have accomplished much. We have met several difficult monetary challenges, and several diverse regulatory challenges. The Federal Reserve was already an outstanding agency, and it has been very satisfying to work to keep it abreast of economic and financial developments." "Ned has contributed powerfully to the work of the Board and of the FOMC for nearly eight years," Federal Reserve Board Chairman Alan Greenspan commented. "Our deliberations have been enriched by his keen insights, his good humor and his lively mind." Gramlich has served as the Board's delegate to, and chair of, the Airline Transportation Stabilization Board, which was set up to administer the $10 billion loan guarantee program enacted in response to the September 11, 2001, disaster. He also chaired the board of Neighborhood Reinvestment Corporation, a partnership that has generated more than $8.5 billion in reinvestment and helped more than 500,000 families of modest means purchase or improve their homes or secure rental or mutual housing. In view of his impending departure and in keeping with Federal Open Market Committee practice, he will not attend the August 9 meeting of the FOMC. Before coming to the Board, he was Dean of Michigan's School of Public Policy, now renamed as the Gerald R. Ford School of Public Policy. He also chaired the 1994-96 Quadrennial Advisory Council on Social Security and was staff director for the 1992 Economic Study Committee on Major League Baseball. -

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