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Obama Nominates Three to Fill Seats on Federal Reserve Board

President Obama submitted his choices for three new Federal Reserve governors to the U.S. Senate Thursday.

The president's nominations include: Dr. Janet L. Yellen, president of the Federal Reserve Bank of San Francisco; Dr. Peter Diamond, a professor at the Massachusetts Institute of Technology (MIT); and Sarah Bloom Raskin, commissioner of financial regulation for the state of Maryland.

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President Obama said in a statement, ""The depth of experience these individuals bring in economic and monetary policy, financial regulation, and consumer protection will make them tremendous assets at the Fed. I am grateful they have chosen to dedicate their talents to serving the American people.""

Yellen has been nominated to serve as a Federal Reserve governor for a term of 14 years, and has been selected by Obama to fill the board's No. 2 position as vice chairman for a four-year term, replacing Donald L. Kohn who resigned earlier this year. Yellen has led the Federal Reserve Bank of San Francisco since 2004. She previously served as a member of the Fed's board of governors from 1994 to 1997 and was chair of the Council of Economic Advisers from 1997 to 1999.

""I am strongly committed to pursuing the dual goals that Congress has assigned us: maximum employment and price stability and, if confirmed, I will work to ensure that policy promotes job creation and keeps inflation in check,"" Yellen said in response to the nomination.

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Diamond has been nominated to serve out the remaining 14-year term of Frederic S. Mishkin, which began in February of 2000. Diamond has been a member of MIT's economics faculty since 1966. He has previously served as president of the American Economic Association, president of the Econometric Society, and president of the National Academy of Social Insurance.

According to a statement from the MIT News Office, Diamond's long-time colleagues applauded the nomination. Ricardo Caballero, chair of the MIT department of economics, said, ""Peter represents the very best that an academic economist has to offer to Washington: a superb and open mind, an insatiable appetite for understanding the institutional details of a problem and policy, and a spirit of service.""

Raskin would serve as governor for the remainder of a recently vacated 14-year term that began in February 2002. For the state of Maryland, Raskin regulates diverse financial institutions including banks, credit unions, mortgage lenders, mortgage servicers, mortgage originators, trust companies, collection agencies, debt management companies, and consumer installment lenders. She chairs the Federal Legislation Committee for the Conference of State Bank Supervisors, as well as the Regulatory Restructuring Task Force and the Consumer Financial Products Agency Task Force.

Upon the news of her nomination, Alexander M. Sanchez, Maryland's secretary of labor, licensing, and regulation, said, ""[Raskin] oversaw a massive effort in the Office of the Commissioner to begin licensing mortgage brokers and has worked closely with federal prosecutors to crack down on foreclosure rescue scams that preyed on Maryland residents. This nomination recognizes that Sarah has an unparalleled record of achievement as a financial regulator.""

The three economists, all Ivy League graduates, are widely expected to easily win approval from the Senate, which will mean Obama will have appointed four of the seven governors on the central bank's board during one of the most tumultuous economic times this nation has seen. Obama's first placement holds the top position â€" his renaming of Fed Chairman Ben Bernanke for a second term.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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