Financial Update (Second Quarter 2006)


 Guynn Notes Growth,
 Some Uncertainties

 Conference Explores
 Markets, Institutions

 Economists Propose
 Fannie, Freddie
 Portfolio Limits

 Kohn Nominated
 as Fed’s
 Vice Chairman

 Atlanta Fed 2005
 Annual Report
 Remembers Katrina

 Fed Announces
 Changes to Cash
 Inventory Services

 Agencies Issue
 Advisory About Flu

 Exploring Credit,
 Debit Cards’
 Payment Process

 Atlanta Fed to
 Maintain Presence
 in Birmingham

 Barron: Community
 Banks Face

 Fed Gov. Olson
 Addresses Importance
 of Banks

 Board Launches
 Web Site
 Geared to Kids

 New Fed Product
 Helps Mitigate
 ACH Risk

 FDIC Ups Insurance
 Limits on Some


  Data Bank

  Circular Letters



Kohn Nominated as Fed’s Vice Chair; Warsh, Kroszner Sworn In as Governors

Kevin M. Warsh
Donald L. Kohn

President Bush has nominated Federal Reserve Governor Donald Kohn to be vice chairman of the Federal Reserve System’s Board of Governors. Upon confirmation by the Senate, Kohn will replace Roger Ferguson, who stepped down as vice chairman in April. Kohn has been a Board governor since 2002.

New governors join the Fed
In other Board of Governors news, Kevin M. Warsh, previously an economics assistant to President Bush, took the oath of office in February. In March, Randall Kroszner, who was an economics professor at the University of Chicago, was sworn in.

Kevin M. Warsh
Kevin M. Warsh

Warsh is filling a vacant seat whose term expires Jan. 31, 2018, and Kroszner is filling a seat vacated by the August 2005 resignation of Edward M. Gramlich. Kroszner’s term expires Jan. 31, 2008.

Ferguson’s last day as vice chairman of the Board of Governors was April 28. Ferguson submitted his resignation in February. It was Ferguson who, on Sept. 11, 2001—while Fed Chairman Alan Greenspan was overseas and unable to fly back to the United States—announced that the Federal Reserve would remain open and operating.

New governors bring broad experience
Warsh, 35, was special assistant to the president for economic policy and served as executive secretary for the National Economic Council. Before joining the Bush administration, Warsh worked for the investment banking division of Morgan Stanley & Co. as executive director and vice president for mergers and acquisitions. Warsh received his bachelor’s degree from Stanford University and a law degree from Harvard Law School.

Randall Kroszner
Randall Kroszner

Prior to joining the Board, Kroszner, 43, served as a research associate at the National Bureau of Economic Research and was a board member of the National Association of Business Economics. He served as a member of the administration’s Council of Economic Advisers from 2001 to 2003. He received his bachelor’s degree from Brown University and his master’s and doctorate degrees from Harvard University.

Helping to shape monetary policy
Formulation of monetary policy is one of the primary responsibilities of members of the Federal Reserve System’s Board of Governors. The seven Board members constitute a majority of the 12-member Federal Open Market Committee, the group that makes the key decisions affecting the cost and availability of money and credit in the economy.

Gov. Kohn bio
Gov. Warsh bio
Gov. Kroszner bio
The Board of Governor’s role

The Board of Governors also regularly reports to Congress, giving an annual report on operations and semiannual reports on the state of the economy and the Fed’s objectives for the growth of money and credit.