[Weekly Compilation of Presidential Documents Volume 32, Number 8 (Monday, February 26, 1996)]
[Pages 354-356]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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.

[[Page 355]]

    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.

Senate Confirmation

    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.

Economic Growth

    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.

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    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.