[Congressional Record (Bound Edition), Volume 147 (2001), Part 10]
[Senate]
[Page 13944]
[From the U.S. Government Publishing Office, www.gpo.gov]



  NOMINATION OF ROGER WALTON FERGUSON, JR., OF MASSACHUSETTS, TO BE A 
     MEMBER OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

  The PRESIDING OFFICER. Under the previous order, the clerk will 
report the nomination.
  The legislative clerk read the nomination of Roger Walton Ferguson, 
Jr., of Massachusetts, to be a Member of the Board of Governors.
  The PRESIDING OFFICER. There are 2 minutes equally divided on the 
nomination.
  Mr. SARBANES. Mr. President, I urge Members to approve the 
nomination. Mr. Ferguson has been serving on the Federal Reserve Board 
and was nominated by President Clinton. His nomination was resubmitted 
by President Bush. The committee reported out overwhelmingly in favor 
of his nomination. I urge his approval.
  I yield back the remainder of my time.
  Mr. BUNNING. Mr. President, unfortunately I must rise today to oppose 
the nomination of Roger Ferguson to be a member of the Board of 
Governors of the Federal Reserve.
  I usually don't vote against presidential nominees. I believe, in 
most cases, that we should defer to the president and allow him to 
appoint his own people.
  However, there are times when I am forced to stand up and to vote 
against the president. I do not enjoy doing this, but I have no doubt 
that I will be making the right vote for Kentucky and the nation.
  Roger Ferguson is a very accomplished man. He is quite qualified to 
be a Federal Reserve Governor.
  He is currently vice chairman. But I cannot, in good conscience, 
support his nomination for a 14-year term.
  It is not Dr. Ferguson's qualifications that concern me; it is his 
judgment that does.
  Right now we are in an economic slowdown. The evidence was there last 
September. But Chairman Greenspan and the Federal Reserve did not act 
in September.
  They did not act in October.
  They did not act in November.
  They did not act in December.
  They did finally act in January.
  Since then, the Fed, to its credit, has continued to move the federal 
funds rate, cutting it 6 times. But the damage has already been done.
  What concerns me about Dr. Ferguson is the response he gave to me in 
the Banking Committee when I asked him this question: ``Hindsight being 
20/20, do you think the Fed waited too long to reduce the target 
federal funds rate?''
  Dr. Ferguson's response was: ``No, sir. Even with 20/20 hindsight, I 
do not believe that to be the case.''
  Mr. President, I simply can't understand that answer. Knowing what we 
know now, it just doesn't make sense.
  During that time last year, practically every single economic 
indicator was headed straight down.
  The markets, especially the NASDAQ were dropping, causing wealth to 
be taken out of the economy. Corporations were announcing layoffs, not 
just dot-coms, but companies like GE.
  The index of leading economic indicators started to fall. And 
consumer confidence started dropping. And GDP slowed markedly.
  Anyone I've talked to since then, now says that, looking back, it's 
pretty clear that the Fed was slow at the switch in recognizing and 
reacting to the warning signs.
  Six rate cuts this year is clear evidence of this. That's the most in 
such a short period of time in decades, and shows just how precarious a 
position our economy was in.
  We're still having trouble turning the corner, and even now there are 
warning signs that our economic slowdown is causing a ripple effect 
around the globe.
  Who knows what would have happened if the Fed had cut rates sooner. 
If Dr. Ferguson is confirmed, I'm afraid we probably never will.
  That truly worries me.
  I am afraid that he is looking over his shoulder already, and is 
concerned about how the Fed Chairman is going to react to his remarks.
  I think Dr. Ferguson was afraid to criticize the chairman and to 
upset the apple cart.
  But I believe that we need strong, independent Fed Governors who are 
willing to challenge the status quo and to make the hard call.
  I am afraid that Dr. Ferguson does not fit this bill.
  We do not need Alan Greenspan clones who will never question the 
chairman, who will never take the contrary view.
  What we need are Fed nominees who will be independent. We need 
nominees who will stand up to the chairman if they believe he is wrong.
  I do not believe Dr. Ferguson will assert that independence. I 
believe his answer to my question in the Banking Committee proves that.
  For this reason, I reluctantly vote ``no'' on the nomination of Dr. 
Roger Ferguson, to a 14-year term as a member of the Board of Governors 
of the Federal Reserve.
  The PRESIDING OFFICER. All time has been yielded back.
  Mr. BREAUX. I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The question is, Will the Senate advise and consent to the nomination 
of Roger Walter Ferguson, Jr., to be a Member of the Board of Governors 
of the Federal Reserve System? On this question the yeas and nays have 
been ordered, and the clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. NICKLES. I announce that the Senator from North Carolina (Mr. 
Helms) is necessarily absent.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 97, nays 2, as follows:
  [Rollcall Vote No. 243 Exec.]

                                YEAS--97

     Akaka
     Allard
     Allen
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Breaux
     Brownback
     Burns
     Byrd
     Campbell
     Cantwell
     Carnahan
     Carper
     Chafee
     Cleland
     Clinton
     Cochran
     Collins
     Conrad
     Corzine
     Craig
     Crapo
     Daschle
     Dayton
     DeWine
     Dodd
     Domenici
     Dorgan
     Durbin
     Edwards
     Ensign
     Enzi
     Feingold
     Feinstein
     Fitzgerald
     Frist
     Graham
     Gramm
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Hollings
     Hutchinson
     Hutchison
     Inhofe
     Inouye
     Jeffords
     Johnson
     Kennedy
     Kerry
     Kohl
     Kyl
     Landrieu
     Leahy
     Levin
     Lieberman
     Lincoln
     Lott
     Lugar
     McCain
     Mikulski
     Miller
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Nickles
     Reed
     Reid
     Roberts
     Rockefeller
     Santorum
     Sarbanes
     Schumer
     Sessions
     Shelby
     Smith (NH)
     Smith (OR)
     Snowe
     Specter
     Stabenow
     Stevens
     Thomas
     Thompson
     Thurmond
     Torricelli
     Voinovich
     Warner
     Wellstone
     Wyden

                                NAYS--2

     Bunning
     McConnell
       

                             NOT VOTING--1

       
     Helms
       
  The nomination was confirmed.

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