    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book I)]
    [February 22, 1996]
    [Pages 315-316]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 315]]

    Remarks Announcing the Nominations for Chairman, Vice Chair, and Member
    of the Board of Governors of the Federal Reserve System and an Exchange
    With Reporters
    February 22, 1996

        The President. Good afternoon. As we seek to sustain economic
    growth, there is no more important institution in our country than the
    Federal Reserve. Its decision can help determine whether businesses can
    borrow and grow, whether families can buy a home, and whether our
    financial system is sound. Its independence and its professionalism are
    an important safeguard for our economy.
        Over the past 3 years, my administration has had a respectful and
    productive relationship with the Federal Reserve. During this time, we
    have done our job to help grow this economy, first by cutting our
    deficit in half and, secondly, by increasing important investments in
    education, technology, and defense conversion.
        The Fed, in turn, has done its job making independent and
    professional judgments on monetary policy. Together our efforts have
    helped to create a climate for sustained economic growth, the lowest
    combination of unemployment, inflation, and mortgage rates in 27 years.
    This relationship has worked.
        Today I am pleased to announce my decision, first, to reappoint Alan
    Greenspan as the Chairman of the Federal Reserve Board. He brings his
    years of experience as a prominent economist and, I might add, a leading
    Republican and a career capped by 8 years of service as the Chairman of
    the Federal Reserve. During his tenure he has inspired confidence and
    for good reason. He has worked with our administration to safeguard the
    stability of global financial markets, recognizing that today even
    temporary difficulties in one corner of the globe can have far-reaching
    effects in another. And more importantly, his decisions have helped us
    to work toward a period of sustained economic growth.
        I'm also proud to announce my intention to nominate two
    distinguished economists to join Chairman Greenspan at the Fed. First, I
    am nominating Dr. Alice Rivlin as the Vice Chair of the Federal Reserve
    Board.
        As a founding Director of the Congressional Budget Office, a senior
    fellow at Brookings Institution, and president of the American Economics
    Association, she is one of our Nation's foremost experts on how to keep
    the economy growing. And as my Director of the Office of Management and
    Budget, she has been my strong right arm as we have cut wasteful
    spending and moved toward a balanced budget.
        I have come to deeply value her independence. She always calls it as
    she sees it. And I know from working with her for 3 years that her
    ultimate test is how the decisions we make affect the lives and the
    future of ordinary American citizens.
        Alice Rivlin has the right combination of mind and heart to serve
    our country well as the Vice Chair of the Federal Reserve. I will miss
    her, and I appreciate her willingness to take on this new
    responsibility.
        For the position of member of the Federal Reserve Board I am today
    nominating Laurence Meyer. Dr. Meyer is a professor of economics at
    Washington University. He is renowned as one of our Nation's leading
    economic forecasters. This year he received the annual award as the most
    accurate forecaster among blue-chip economists, an award he also won in
    1993. Because of that, his economic forecasts are closely listened to at
    both OMB and CBO. Now, that is no small feat. [Laughter] He consults
    widely for American businesses, and his judgment and experience will
    serve our Nation well at the Federal Reserve.
        If we all continue to do our part and the Federal Reserve continues
    to be strong, forthright, and resolute, we can create a climate for
    sustained growth and prosperity for the American people for years to
    come. I look forward to working with these nominees, and I hope the
    Senate will give them speedy and favorable consideration.
        Thank you, Mr. Greenspan. Alice, Dr. Meyer, thank you very much.
        Q. Do you have any guarantees from the Senate, Mr. President?
        The President. I don't know that there are any guarantees left in
    this old world, but I feel quite confident that this team of people will
    be confirmed.

    [[Page 316]]

        Q. Mr. President, do you think these three people will be able to
    engage in the kind of debate you were talking about in New York last
    week?
        The President. I do. And I feel good about it. After all, what
    should our objective be? Our objective should be to achieve the maximum
    sustainable economic growth in our country, consistent with not letting
    inflation get out of hand. And the Fed can't do that alone. The rest of
    us have to do our part, too.
        I think balancing the budget is an important part of it. I think
    bringing the benefits of education and technology to all the members of
    the work force who are stuck in stagnant wages now is a very important
    part of it. I think creating incentives to invest in the areas where
    there aren't enough jobs of any kind, in the inner cities and the rural
    areas, is an important part of it. That's what our empowerment zone
    meeting today is about. And I think paying some special attention to all
    those people who have been downsized and trying to devise ways that will
    speed their reentry into the job market at appropriate levels is an
    important part of it.
        So no one can do this job alone, but I think that the truth is that
    we're entering a new economy, and it's a subject that ought to be open
    to honest debate. I was encouraged by the comments that Chairman
    Greenspan made in his two appearances before the Congress in the last
    couple of days. And I feel good about this group of distinguished
    Americans being in the positions for which I have nominated them.
        Q. Thank you, Mr. President.
        The President. Thank you.
        Q. Can we ask Dr. Rivlin a question?
        The President. Sure.
        Q. What level of growth would you like to see, Dr. Rivlin?
    [Laughter] And Dr. Meyer as well, if you could.
        Alice Rivlin. A sustainable level consistent with low inflation.
    [Laughter]
        Q. Dr. Rivlin, could we ask, have you had a change of heart? Didn't
    you indicate just recently that you weren't really interested in this
    job?
        Dr. Rivlin. Yes, I did. [Laughter]
        Q. Is the President persuasive or----
        The President. I haven't lost all my powers of persuasion.
    [Laughter] Battered and bloody though I may be, I can still once in a
    while make a good argument. [Laughter]
        Thank you.

    Note: The President spoke at 4:47 p.m. in the Oval Office at the White
    House.