According to the Federal Reserve, Kevin Warsh announced his intent to resign as a member of the Board of Governors of the Federal Reserve System on or around March 31, 2011. Why should this be noteworthy?
1) The Federal Open Market Committee (FOMC) is the executive board of the Federal Reserve and directs USA monetary policy.
2) The current voting members of the FOMC are Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; Narayana Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
3) There is already one vacancy on the FOMC – and this nomination has been bogged down in Congress for nine months. All members now are appointees of President Obama.
4) Congress is divided with the Republicans having an anti-current Federal Reserve policy bent.
Kevin Warsh was the youngest member ever of the FOMC. There were no reasons given for his departure. The entire press release:
Kevin Warsh announced his intent to resign as a member of the Board of Governors of the Federal Reserve System on or around March 31, 2011.
Governor Warsh, a member of the Board since February 2006, submitted his letter of resignation to President Obama today.
“Kevin rendered the Federal Reserve and the nation exemplary service during his time at the Board,” Federal Reserve Board Chairman Ben S. Bernanke said. “In particular, his intimate knowledge of financial markets and institutions proved invaluable during the recent crisis. And he worked energetically and effectively behind the scenes overseeing the operations of the Board and the Federal Reserve System. I deeply appreciate his insights and wise counsel and, most especially, his fortitude and friendship during the difficult days, nights, and weekends of the crisis.”
Warsh has focused most significantly on issues related to financial markets and the conduct of monetary policy.
Warsh has served as the Federal Reserve’s representative to the Group of Twenty and the Board’s emissary to the emerging and advanced economies in Asia. In addition, he has served as Administrative Governor, managing and overseeing the Board’s operations, personnel, and financial performance.
Prior to his appointment to the Board, from 2002 until 2006, Warsh served as Special Assistant to the President for Economic Policy and Executive Secretary of the White House National Economic Council.
Previously, Warsh was a member of the Mergers & Acquisitions department at Morgan Stanley & Co. in New York, serving as Vice President and Executive Director.
Warsh was born in Albany, New York. He received his A.B. from Stanford University, and his J.D. from Harvard Law School.
A copy of his letter is attached.