by Calculated Risk on 5/18/2005 12:10:00 PM

Edward M. Gramlich resigned today from the Federal Reserve Board of Governors according to a FED press release this morning.

Edward M. Gramlich submitted his resignation Wednesday as a member of the Board of Governors of the Federal Reserve System, effective August 31, 2005. Gramlich, who has been a member of the Board since November 5, 1997, submitted his letter of resignation to President Bush. In view of his impending departure and in keeping with Federal Open Market Committee practice, he will not attend the August 9 meeting of the FOMC.

"Ned has contributed powerfully to the work of the Board and of the FOMC for nearly eight years," said Federal Reserve Board Chairman Alan Greenspan. "Our deliberations have been enriched by his keen insights, his good humor and his lively mind."

Meanwhile, the WaPo is reporting that "Administration Considers Delaying Fed Chief's Exit".

Bush administration officials are mulling whether to encourage Greenspan, 79, to continue as Fed chairman for at least a few months beyond the Jan. 31 expiration of his term, according to sources told of the possibility.

That would give the White House more time to broaden the search for possible successors, looking beyond the academic and policy worlds to the corporate world, as they have been urged to do by some financial analysts.

"More time to broaden the search"? The White House wasn't aware that Greenspan was retiring in January?

UPDATE: New MUST READ Fed Watch by Dr. Tim Duy: Steady as She Goes – In More Ways Than One