The University Record, July 16, 1997

Gramlich nominated to Fed; Senate confirmation pending


By Bernie DeGroat
News and Information Services

Edward M. (Ned) Gramlich, dean of the School of Public Policy and professor of economics and public policy, was named last week to the Federal Reserve Board.

President Bill Clinton nominated Gramlich and New York banking consultant Roger W. Ferguson Jr. to fill the two vacancies on the seven-member board. Their appointments must now be confirmed by the U.S. Senate.

Headed by Alan Greenspan, the board oversees the Federal Reserve System, which formulates monetary policy, sets interest rates for millions of American consumers and businesses, and regulates the nation's largest banking companies.

"I am extremely pleased that Ned Gramlich has been nominated to serve as a member of the Board of Governors of the Federal Reserve," says President Lee C. Bollinger. "Those of us who have worked with Ned for many years know that he is a gifted scholar and teacher who believes strongly in public service.

"He has been a wise counselor to the University whose modesty is equally matched by his intellectual and practical talents. We at Michigan are proud that one of our most talented faculty members has been nominated to serve in such an important national role."

Gramlich, a researcher for the Fed from 1965 to 1970, recently served as chairman of the national Social Security Advisory Council, which conducted a two-year study and issued a report in January on ways to prevent the Social Security system from going broke in the near future.

In addition, Gramlich served as deputy and acting director of the Congressional Budget Office in 1986-87 and was a member of its Panel of Economic Advisors in 1988-92. He also was the staff director of the Major League Baseball Economic Study Committee in 1991-92.

"I'm thrilled about the appointment," Gramlich says. "The Fed was the first place I worked as an economist and it was fun then. I had no idea I'd ever come back as a Governor, but I expect it to be even more fun now.

"It's also challenging because the way the world economy has developed lately, the central banks have an unusual amount of importance. This is one of the key places where public policy is made these days and public policy is what I do."