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The Federal Open Market Committee decided on September 24, 2002, to keep its target for the federal funds rate unchanged at 1 3/4 percent.

The information that has become available since the last meeting of the Committee suggests that aggregate demand is growing at a moderate pace.

Over time, the current accommodative stance of monetary policy, coupled with still robust underlying growth in productivity, should be sufficient to foster an improving business climate. However, considerable uncertainty persists about the extent and timing of the expected pickup in production and employment owing in part to the emergence of heightened geopolitical risks.

Consequently, the Committee believes that, for the foreseeable future, against the background of its long-run goals of price stability and sustainable economic growth and of the information currently available, the risks are weighted mainly toward conditions that may generate economic weakness.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; William J. McDonough, Vice Chairman; Ben S. Bernanke; Susan S. Bies; Roger W. Ferguson, Jr.; Jerry L. Jordan; Donald L. Kohn; Mark W. Olson; Anthony M. Santomero; and Gary H. Stern.

Voting against the action were: Edward M. Gramlich and Robert D. McTeer, Jr.

Governor Gramlich and President McTeer preferred a reduction in the target for the federal funds rate.


The Federal Reserve Board on October 11, 2002, announced the appointment of chairmen and deputy chairmen of the twelve Federal Reserve Banks for 2003.

Each Reserve Bank has a nine-member board of directors. The Board of Governors in Washington appoints three of these directors and designates one of its appointees as chairman and a second as deputy chairman.

Following are the names of the chairmen and deputy chairmen appointed by the Board for 2003:


James J. Norton, Vice President, AFL-CIO, Washington, D.C., named Chairman.

Samuel O. Thier, M.D., President and Chief Executive Officer, Partners HealthCare System, Inc., Boston, Massachusetts, named Deputy Chairman.

New York

Peter G. Peterson, Chairman, The Blackstone Group, New York, New York, renamed Chairman.

John E. Sexton, President, New York University, New York, New York, named Deputy Chairman.


Glenn A. Schaeffer, President Emeritus, Pennsylvania Building and Construction Trades Council, Harrisburg, Pennsylvania, named Chairman.

Ronald J. Naples, Chairman and Chief Executive Officer, Quaker Chemical Corporation, Conshohocken, Pennsylvania, named Deputy Chairman.


Robert W. Mahoney, Retired Chairman and Chief Executive Officer, Diebold, Incorporated, Canton, Ohio, named Chairman.

Charles E. Bunch, President and Chief Operating Officer, PPG Industries, Inc., Pittsburgh, Pennsylvania, named Deputy Chairman.


Wesley S. Williams, Jr., Partner, Covington & Burling, Washington, D.C., named Chairman.

Irwin Zazulia, Retired President and Chief Executive Officer, Hecht's, Arlington, Virginia, named Deputy Chairman.


Paula Lovell, President, Lovell Communications, Inc., Nashville, Tennessee, named Chairman.

David M. Ratcliffe, President and Chief Executive Officer, Georgia Power Company, Atlanta, Georgia, named Deputy Chairman.


Robert J. Darnall, Former Chairman, President, and Chief Executive Officer, Inland Steel Industries, Inc., Chicago, Illinois, renamed Chairman.

W. James Farrell, Chairman and Chief Executive Officer, Illinois Tool Works Inc., Glenview, Illinois, renamed Deputy Chairman.

St. Louis

Charles W. Mueller, Chairman and Chief Executive Officer, Ameren Corporation, St. …