May 18, 2004

Greenspan Renomination

Ah. The game playing stops:

WSJ.com - Greenspan Gets Bush Nomination To Another Term: The Senate is expected to approve Mr. Greenspan's renomination without controversy, and he can continue in the post even if a vote occurs after June 20....

As a bureaucrat manque, I find it interesting to consider what will happen on June 21 if the Senate has not confirmed Greenspan to another term as chair. IIRC, the White House will issue a press release saying that since Greenspan's term as Chair has expired, the White House has, under the terms of the Administrative Procedures Act, appointed him to the post of Acting Chair, in which he will serve until confirmed by the Senate. The Federal Reserve will issue a press release saying that even though Greenspan's term as Chair has expired he continues to serve as Acting Chair under the terms of the Federal Reserve Act.

Never--when the Chair's term has expired--has a President named a different Acting Chair under the APA than the Chair whose term has just expired. So there has never been any conflict between whom the White House thinks the Acting Chair is and who the Federal Reserve thinks the Acting Chair is.

Curiously enough, no Vice Chair has ever dared opine that, if the Chair's term expires, perhaps the Vice Chair should become the Acting Chair. That's just not done.

Posted by DeLong at May 18, 2004 09:34 PM | TrackBack | | Other weblogs commenting on this post
Comments

It's not the APA. That's about issuing regulations (and challenging them). Try sec. 10 of the Federal Reserve act, http://www.federalreserve.gov/GeneralInfo/fract/sect10.htm, which says.

"Of the persons thus appointed, one shall be designated by the President, by and with the advice and consent of the Senate, to serve as Chairman of the Board for a term of four years, and one shall be designated by the President, by and with the consent of the Senate, to serve as Vice Chairman of the Board for a term of four years. The chairman of the Board, subject to its supervision, shall be its active executive officer. Each member of the Board shall within fifteen days after notice of appointment make and subscribe to the oath of office. Upon the expiration of their terms of office, members of the Board shall continue to serve until their successors are appointed and have qualified."

So the reason the Chair stays in office is that the statute (more likely than not) says he does....Yes, you could read the statute's continuance in office clause to apply only to terms as Members and not also to terms as the Chair; but the clause comes after the definition of the Chair, so it's reasonable to read it as applying to both Chair and member terms -- especially in light of practices to date....

Posted by: Michael Froomkin on May 18, 2004 10:15 PM

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Then why has the White House Counsel occasionally issued press releases stating that the President has just appointed the ex-Chair to the post of Acting Chair?

It says that "members of the Board" shall continue to serve. So it's also reasonable to read it as applying only to member terms...

Posted by: Brad DeLong on May 18, 2004 10:21 PM

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"As a bureaucrat manque ..." Surely you mean "sometime bureaucrat"? And it's "manqué" with an accent. The phrase only applies to a profession one wanted to exercise but couldn't, for lack of talent or opportunity.

Posted by: James on May 19, 2004 03:20 AM

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