Fed Swears In Newest Member

Frederic Mishkin, a former Columbia University professor, was sworn in Tuesday as the newest member of the Federal Reserve.

Mishkin’s addition to the central bank’s board of governors gives Fed Chairman Ben S. Bernanke another champion for “inflation targeting,” numerically spelling out acceptable bounds for inflation.

Bernanke favors the notion of an inflation target and believes that it would help the central bank communicate more effectively with Wall Street and Main Street.

Although the Fed is looking at this and other matters to bolster communications, no decisions are imminent.

Former Fed Chairman Alan Greenspan eschewed inflation targeting, contending that it could crimp the Fed’s flexibility. Bernanke succeeded him in February.

The Fed determines the course of interest rates, which affect investors large and small. It also is responsible for making sure the nation’s financial system remains sound.

Bernanke administered the oath of office to Mishkin on Tuesday in the ornate boardroom at the Fed’s marble headquarters.