Reuters is reporting that San Francisco Federal Reserve Bank President Janet Yellen will be tapped to replace Donald Kohn as Vice Chair of the Federal Reserve Board of Governors. She’s an excellent person and will do an excellent job, but as Brad DeLong observes this move doesn’t really change anything on the FOMC in a serious way since she’s already the President of the San Francisco Fed.
Indeed, depending on who her successor is there, the net impact could even be negative. Which is why it’s important that the administration move on filling the other two vacancies. The Reuters piece, however, contains the first reporting I’ve seen that the administration is in fact vetting people for these jobs and says Sarah Bloom Raskin, Peter Diamond, Jeremy Stein, David Scharfstein, and Laurence Ball. I don’t know anything about any of those people except for Peter Diamond, and the work of his that I know (Social Security stuff about two clicks right of Dean Baker) doesn’t seem terribly relevant to what the Fed does.