December 10, 2002 (PLANSPONSOR.com) - Finding some
room for optimism, the Federal Open Market Committee (FOMC)
decided today to keep its target for the federal funds rate
unchanged at 1.25%.
The unanimous decision by the Federal Reserve noted that
“The limited number of incoming economic indicators since
the November meeting, taken together, are not inconsistent
with the economy working its way through its current soft
spot.”
The Fed also maintained its characterization of the
risks faced by the economy as evenly balanced between
rising prices and a renewed downturn.
That stance, adopted at
last month’s FOMC
meeting
, was seen by many as a signal of steady rates for the
foreseeable future.
December 9, 2002 (PLANSPONSOR.com) - President Bush
has named John Snow his new Secretary of the Treasury and is
expected to name Stephen Friedman to the White House economic
adviser position.
Snow joins the position,
vacated
by Paul O’Neill on Friday
, from his job with railroad holding company CSX Corp.,
where he served as Chief Executive Officer.
This will not be Snow’s first trip to the White House,
as he held several senior jobs in the Transportation
Department in the 1970’s, including a year of heading up
the National Highway Traffic Safety Administration.
Additionally, Snow served this year as a co-Chairman of
a Conference Board committee looking into changes of how
corporations are governed.
Under Snow’s guidance, the committee came up with
governance suggestions, including:
Boosting the power of compensation committees
Reducing “excessive use” of stock options through
option expensing
Requiring executives to give advance notice of their
intent to sell stock
“John Snow has excelled as a business leader, an expert
on economic policy, an academic, and as a public servant,”
Bush said. “He’ll be a superb member of my cabinet.”
Friedman, who is looked at to assume the role abdicated
by Lawrence Lindsey, would join the President’s team from
his position as a senior principal of Marsh & McLennan.
Prior to that, he headed up Goldman Sachs & Co. with
former Secretary of the Treasury Robert Rubin.
The White House may be looking to Friedman to provide a
link to the financial markets to build consensus for the
President’s economic policies.
President Bush is also looking to fill the Chairman
of the Security and Exchange Commission and to find a
head for the new accounting-standards board.