Supply-Sider and Monetarist Named to Fed

President Reagan, splitting the difference between the monetarist and supply-side schools of economics, picked Wayne D. Angell and Manuel H. Johnson on Thursday to fill two seats on the powerful Federal Reserve Board.

Johnson, assistant Treasury secretary for economic policy, is a follower of the supply-side school that believes in the need for sharp cuts in tax rates and an easy monetary policy to stimulate economic growth.

Angell, economics professor at Ottawa University in Kansas, is a monetarist who advocates steady money growth as a way of guarding against inflation.

The nominations must be confirmed by the Senate.

Named a Majority

With the selection of Johnson and Angell, Reagan has appointed a majority of the seven-member board, which controls the nation’s money supply. Earlier, he named Preston Martin, the Fed’s vice chairman, and Martha Seeger. He also reappointed Paul A. Volcker to a second four-year term as chairman.

Johnson was picked for a 14-year term beginning next Feb. 1, succeeding J. Charles Partee. Angell was named to fill the unexpired term of Lyle E. Gramley, who resigned. It expires in 1994.

Johnson, a key architect of the tax cuts enacted in Reagan’s first year in office, has often criticized Volcker’s money policies.

Supply-siders fault Volcker for pursuing a tight-money policy, which drove up interest rates and, they say, plunged the country into a recession.

Angell, who also is a part-time farmer and banker, had the powerful backing of Senate Majority Leader Bob Dole (R-Kan.).

Reagan’s two earlier appointees, Martin and Seeger, have frequently dissented from Volcker, favoring looser money controls to fuel the recovery.

By picking proponents of opposing camps, Reagan apparently decided not to try to tilt the ideological balance of the board one way or the other.

Johnson, 36, was an associate professor of economics at George Mason University in Fairfax, Va., before joining the Reagan Administration in 1981. A resident of Fairfax, he is married and has two children.

Angell, 55, is director of the Federal Reserve Bank of Kansas City and an economics professor since 1956, is married and has three children.