Public Policy Dean Edward Gramlich is expected to be nominated to the Federal Reserve Board, Provost J. Bernard Machen announced at Friday's meeting of the University Board of Regents.
Gramlich, if appointed to a Fed governor position, would serve a 14-year term and fill one of two vacant spots on the Fed. If Gramlich is nominated by President Clinton and accepts the position, he will have to resign from his position at the University, Machen said.
"Obviously it's a great honor for him if he is confirmed," Machen said. "The sad part for me will be that if he gets it he will have to resign from his position at the University. But like he said to me today, the Federal Reserve is like the Supreme Court for economists."
Gramlich had no comment on the appointment process.
White House Press Secretary Michael McCurry told The Wall Street Journal last week that Clinton approved two candidates, one of whom was Gramlich, for the Fed positions. The second candidate is Roger Ferguson, who is a partner at the McKinsey Company consulting firm and works primarily in the company's financial institutions group.
Public Policy Prof. John Chamberlin said Gramlich has a long history of bringing significant wisdom to national public policy questions.
"His appointment to be a governor to the Fed is an important recognition to his accomplishments and an appropriate next step for him," Chamberlin said. "We will miss him greatly if he is fortunate enough to be nominated and accepted."
Gramlich has worked as an economics professor at the University for the past 22 years. Gramlich served as chair of a federal advisory commission on Social Security finances, which released its report recently. For a short time in the late '80s, Gramlich was acting chief of the congressional budget offices. Before coming to the University he spent three years at the Brooking's Institute, a liberal Washington, D.C. thinktank.
National organizations sought Gramlich's knowledge and expertise, including an appointment by major league baseball owners to conduct a study on the economics of the league.
Regent Shirley McFee (R-Battle Creek) said Gramlich's potential appointment to the Fed is a great compliment to the University.
"I think that it's a tremendous honor both for him and the University," McFee said. "He's done extensive work on design and recommendations. I am very impressed (with that) work and the work he's done in the School of Public Policy. It is a credit both to him and the University."
Public Policy graduate student Kwe Akuete said "if we lose Dean Gramlich, it would be a shame to see him go."
- The Associated Press and Daily Staff Reporter Katie Wang contributed to this report.