I was in the room when President Bill Clinton decided to reappoint Alan Greenspan, a lifelong Republican originally appointed by Ronald Reagan, as chairman of the Federal Reserve Board. A political adviser urged Mr. Clinton to choose an administration ally, but that was never seriously considered. The president's choice was not determined by party, or politics or ideology.
That's how it has been for decades: Federal Reserve chairmen and governors have been selected based on their ability to serve the country. President Barack Obama reappointed George W. Bush's nominee, Ben Bernanke, as chairman. President Reagan reappointed Jimmy Carter's nominee, Paul Volcker.
Read Full Article »