New Nominees to Federal Reserve Board
President Clinton has announced two nominations to the Board of Governors of the Federal Reserve System. Alice Rivlin, presently the White House budget director, has a diverse and distinguished background including positions at Brookings Institution, the Congressional Budget Office, and the Department of Health, Education and Welfare. Laurence H. Meyer, President of Laurence H. Meyer & Associates, an economic consulting firm, has worked as an economist at the Federal Reserve Banks of New York and St. Louis.
Governors of the Federal Reserve have several important responsibilities. The Board influences or manages our economy. Second, it regulates bank holding companies. Finally, it regulates the credit industry through the regulatory responsibility assigned to the Federal Reserve. These responsibilities include most of the "alphabet" or consumer protection regulations including Regulations B, C, E, M, Z, AA, BB, CC, and DD.
On a board of seven, two new members can make a significant difference. Although the prognosticators are already announcing how they expect these two individuals to respond on economic issues such as rate setting, there are no predictions for their positions on compliance issues. The compliance world will have to watch and wait.
Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 4, 2/96
First published on 02/01/1996