Financial Update (Second Quarter 2007)

Bush Announces Board of Governors Nominees

President Bush has announced plans for three nominations to the Federal Reserve Board of Governors.

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Members of the Board of Governors off-site image

The President said he will nominate current Governor Randall Kroszner, 44, of New Jersey to a 14-year term expiring Jan. 31, 2022. Kroszner is currently filling an unexpired term ending Jan. 31, 2008.

Bush also announced plans to nominate Elizabeth Duke of Virginia and Larry Allan Klane of the District of Columbia to fill current terms on the Board of Governors. Duke is being nominated for a term expiring Jan. 31, 2012, and Klane for a term ending Jan. 31, 2010.

Nominees bring varied backgrounds
Duke, 54, is former chairman of the American Bankers Association and is now the chief operating officer of TowneBank in Portsmouth, Va. TowneBank provides financial services including banking, real estate, asset management, and insurance.

Klane, 46, is president of Capital One Financial's global financial services. Based in McLean, Va., the company is one of the nation's largest credit card issuers.

Senate confirmation is the next step
The nominees must be confirmed by the U.S. Senate before being appointed to the board. The seven-member Board of Governors currently has two vacant seats.

The nominees must be confirmed by the U.S. Senate before being appointed to the board. The seven-member Board of Governors currently has two vacant seats.

One Board term begins every two years, on Feb. 1 of even-numbered years. A member who serves a full term may not be reappointed, and a member who completes an unexpired portion of a term may be reappointed.

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.

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.

June 6, 2007