Diamond nominated for Federal Reserve post
MIT economist and Institute Professor Peter Diamond PhD ’63 has been nominated by U.S. President Barack Obama to serve on the Board of Governors of the Federal Reserve, the central bank of the United States. If confirmed to what would be a 14-year term, Diamond would be one of seven governors on the board.As a member of the Fed’s board, Diamond would automatically serve on the Federal Open Market Committee (FOMC), the group that influences economic activity, employment and inflation by setting key interest rates. At the moment, interest rates are low in an effort to spur lending, investment and growth following the deep recession that began in late 2007. The Fed also studies national and international economic conditions and helps supervise the financial services industry. Congress is currently considering whether to augment the Fed’s regulatory responsibilities as part of its drive to reform the financial system.In addition to nominating...