Prof. Friedman Rumored to Be Fed. Board Pick

Maier Professor of Political Economy Benjamin M. Friedman '66 is rumored to be under consideration for the post of vice chair of the Federal Reserve Board of Governors.

Friedman "has been mentioned prominently by folks in the Senate Banking Committee" as a potential candidate, Michael Meehan, the press spokesperson for Sen. John F. Kerry (D-Mass.), told the Boston Globe.

Friedman, reached in his office Friday, repeatedly declined to comment on the rumors.

"The newspapers from time to time have talked about this sort of thing," Friedman said. "It happens from time to time, and I just never comment on this sort of thing."

Friedman has authored a number of books and articles about deficits, including a critique of the Reagan-era deficits and an analysis of the impact of Clinton's budget on the deficit.

If he were named to the Board of Governors, Friedman would work with Fed chair Alan Greenspan, other members of the Board of Governors and the presidents of the 12 regional Federal Reserve Banks, to set interest rates and manage the money supply.

The position of vice chair became available when current vice chair Alan Blinder announced last week that he will not seek renomination when his term expires on January 31. Blinder said he will return to teaching at Princeton University, where he worked before assuming his Fed post in June, 1994.

Another Princeton economics professor has also been mentioned as a candidate for the post. Peter Kenen, a professor of economics and international finance, had was also rumored to be under consideration for a Fed spot in 1993. Kenen received his doctorate from Harvard.

Another frequently mentioned candidate is Felix Rohatyn, a Wall Street investment banker, and long-time friend of Greenspan.

Rohatyn, the managing director of Lazard Freres & Co., is one of the few prominent Wall Street figures who has supported liberal and Democratic causes, according to the Wall Street Journal.

The National Economic Council will review candidates for the post and submit names to President Clinton, White House spokesperson Michael McCurry said Friday in a press briefing.

Clinton is "looking for someone who will continue economic policies that will contribute to the fundamentally strong aspects and elements of the U.S. economy," McCurry said.

The seven member Board of Governors will have two open spots when Blinder steps down because John LaWare, who resigned last April, has yet to be replaced.

Friedman's Work

Friedman graduated summa cum laude in economics from Harvard in 1966. He received his masters in economics at Harvard in 1969, before obtaining a master of science degree in economics and politics at King's College in England in 1971. Friedman then returned to Harvard, where he received his Ph.D. in economics in 1971.

He worked at the consulting firm of Morgan Stanley and Co. for a year, before returning to Harvard as an assistant professor in 1972. He was promoted to associate professor in 1976 and tenured in 1980. In 1989, he received his endowed chair.

Friedman has several years of experience working at Federal Reserve Banks.

In 1968, he worked as a research assistant at the Federal Reserve Bank of New York. From 1968 to 1971, he worked as a consultant for the Federal Reserve Bank of Boston, first as a staff consultant and then as a consultant to the President.

In 1969, Friedman worked as the assistant to the director of the Division of Research and Statistics of the Board of Governors of the Federal Reserve System. He also worked as a staff member on a subcommittee of the Board of Governors

Friedman has several years of experience working at Federal Reserve Banks.

In 1968, he worked as a research assistant at the Federal Reserve Bank of New York. From 1968 to 1971, he worked as a consultant for the Federal Reserve Bank of Boston, first as a staff consultant and then as a consultant to the President.

In 1969, Friedman worked as the assistant to the director of the Division of Research and Statistics of the Board of Governors of the Federal Reserve System. He also worked as a staff member on a subcommittee of the Board of Governors