Federal Reserve Vice Chairman Donald Kohn said he will remain at the central bank for about two months longer than his scheduled June 23 departure to help a shorthanded Board of Governors.
Mr. Kohn, 67, will stay on as a governor, at the request of Fed Chairman Ben S. Bernanke, until no later than Sept. 1, the central bank said Friday in a statement in Washington. Mr. Kohn’s term as vice chairman ends June 23, while his term as governor runs through 2016. The Senate has yet to act on President Barack Obama’s April nominations of three Fed governors, including San Francisco Fed President Janet Yellen as Mr. Kohn’s successor.
The delay means Mr. Kohn, a 40-year Fed veteran, may participate in the next two meetings of central bank policymakers on June 22-23 and Aug. 10. Mr. Bernanke will be able to tap Mr. Kohn’s expertise as officials debate the Fed’s exit from record monetary stimulus and the impact of Europe’s debt crisis on the U.S. economy. With Mr. Kohn gone, there would be three vacancies on the seven-member Board of Governors instead of two.
Senate Banking Committee Chairman Christopher Dodd, D-Conn., whose panel is responsible for holding a nomination hearing and making a recommendation to the Senate, has been preoccupied in recent months with completing legislation overhauling financial regulation. On Thursday, Mr. Dodd began a conference with House lawmakers to reconcile two versions of the bill.
Mr. Kohn, who previously served as former Fed Chairman Alan Greenspan’s top monetary policy adviser, was appointed as a Fed governor in 2002 and as vice chairman in 2006 by then-President George W. Bush. He announced his retirement from the Fed in March.
In addition to Ms. Yellen, Mr. Obama’s other Fed nominees include Peter Diamond, an economics professor at the Massachusetts Institute of Technology, and Sarah Bloom Raskin, Maryland’s top bank regulator.