McDonough Named President of N.Y. Fed
The New York Federal Reserve Bank on Friday appointed William McDonough as its new president, a post second only to the chairman of the Federal Reserve Board in terms of setting the nation’s monetary policy.
McDonough, thought of in financial circles as a moderate, will take the post Monday. He succeeds E. Gerald Corrigan, who was appointed by President Clinton earlier in the week to head the Russian-American Enterprise Fund, set up to promote private-sector development in Russia.
Although the Federal Reserve is made up of 12 member banks, the New York Fed president has unusual clout.
He is the only one with a permanent seat on the Federal Open Market Committee, which essentially sets interest rates by injecting or withdrawing reserves from the U.S. banking system.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
