WASHINGTON—President Barack Obama will nominate University of Michigan economist Kathryn Dominguez for a seat on the Federal Reserve’s Board of Governors, the White House said Monday.
Ms. Dominguez is a professor of public policy and economics at the University of Michigan’s Gerald R. Ford School of Public Policy, having previously taught at Harvard University’s John F. Kennedy School of Government. She has a doctorate in economics from Yale University and her academic specialties include international financial markets and foreign exchange-rate behavior.
http://www.wsj.com/...
Building on a string of successive political victories, President Obama has three vacancies to fill at the Fed. He is adding to his already substantial legacy by reshaping the entire Board of Governors and its role in the economy.
In a 2013 working paper, she and a co-author said financial and fiscal developments in Europe, along with “self-inflicted wounds from the political stalemate over the U.S. fiscal situation,” helped explain why the U.S. recovery had been so slow.
(same WSJ article).
At Michigan Ms. Dominguez teaches a course called "Jane Austen and Economics" which analyzes how marriage and inheritance laws exacerbate poverty in selected portions of the middle and lower classes.
A spokeswoman for Richard Shelby (R), chair of the Senate Banking Committee, said he would “carefully review the [Dominguez] nomination and the committee will consider it at an appropriate time.”
WASHINGTON—The Federal Reserve sent a message to the largest U.S. financial firms: Staying big is going to cost you.
The Fed’s warning, articulated in a pair of rules it finalized Monday, is among the central bank’s starkest post crisis regulatory moves pressing Wall Street banks to reconsider their size and appetite for risk.
The Fed completed one rule stating that the eight largest banks in the country should maintain an additional layer of capital to protect against losses, its plainest effort yet to encourage them to shrink. At the same time, it offered a reprieve to General Electric Co. ’s finance unit from more-intensive regulation, after the company promised to cut its assets by more than half.
http://www.wsj.com/...