How great would it be if Bush followed up on Greenspan by nominating a fully-qualified, broadly-respect candidate to chair the Fed? I'd happily trade an incompetent on the Supreme Court for a steady hand stroking the markets. And now, via Brad DeLong, The Economist has a pick:
[W]e believe the best choice would be Don Kohn, a governor on the Federal Reserve Board, who is not affiliated to any party. Mr Kohn has another big advantage. As a staff member before being promoted to governor in 2002 on Mr Greenspan's recommendation, Mr Kohn has been attending the Fed's policy-making meetings for almost 24 years, even longer than Mr Greenspan. His vast experience of monetary-policy decisions and financial crises would be invaluable in troubled times. He is highly regarded by economists in the Fed and on Wall Street, and having worked with Mr Greenspan for so long, his thinking on interest-rate policy and financial markets is also close to the chairman's.
I don't know if there's anyway for congressional Democrats and Republicans to begin pressuring Bush not to cock this one up, but if there is, now's really the time to start. So far as I'm concerned, on the Supreme Court, the problem with cronyism is symbolic, I just don't like the idea of it, but it's not particularly likely to damage anything. Copicknversely, on FEMA and, even more so, the Fed, we need qualified, broadly acceptable folks. The drumbeat for them should start now.
