Ferguson Nominated for Fed Post
President Clinton announced plans Friday to elevate Roger W. Ferguson to the vice chairmanship of the Federal Reserve Board, which he has served for almost two years as a governor.
If confirmed for the post by the Senate, Ferguson would rank just below Fed Chairman Alan Greenspan and would become the first African American to serve in the Fed’s second-ranking slot.
Ferguson is a 47-year-old economist and lawyer who is considered an expert on technology. He was appointed to the Fed board in late 1997 and has been instrumental in improving its payment system and in ensuring that the central bank’s computers are ready to handle any glitches that may arise when the year 2000 begins.
Clinton also nominated Carol J. Parry, a retired bank executive, to an unfilled position on the board, based partly on her experience in dealing with the Community Reinvestment Act, a law that requires banks to lend to low-income areas.
There was no immediate indication how either appointment would be received by the Senate. Congress adjourned Thursday for a month.
Neither of Friday’s appointments, if confirmed by the Senate, is expected to have any major impact on the Fed’s money and credit policies.
Ferguson rarely has been vocal in expressing his views on interest rates or monetary policy, but insiders say he has built a close working relationship with Greenspan, who is expected to be reappointed by Clinton when his term expires in August 2000.
Ferguson would replace longtime Vice Chairman Alice M. Rivlin, who stepped down in July. White House officials said they have not made any decision about whom Clinton would nominate to replace him if the nomination is approved by the Senate.
Before joining the board of governors in November 1997, Ferguson was a partner in McKinsey & Co., a New York-based consulting firm, in charge of information technology systems. He earned both a law degree and a doctorate in economics from Harvard University.
Ferguson is the third black person to serve as a member of the Fed’s board of governors, following Andrew Brimmer, who was named by President Lyndon B. Johnson, and Emmett Rice, who was appointed by President Jimmy Carter.
Parry, 58, recently retired as an executive vice president at Chase Manhattan Corp., the bank holding company.
She earned a bachelor’s degree from Tufts University and a master’s degree in social work from the University of Connecticut.
The seven-member Federal Reserve Board sets the nation’s money and credit policies and helps regulate America’s banks. Together with the presidents of four regional Federal Reserve banks, it meets every 45 days or so to set interest rate targets.
