Kohn to be Fed’s No. 2 official


WASHINGTON (AP) – Federal Reserve governor Donald Kohn will take the No. 2 spot at the central bank, the White House announced Thursday.

Kohn, who took office as a governor in August 2002, was nominated as vice chairman to replace Roger Ferguson who left the central bank in late April.

The Fed determines the course of interest rates, which affects investors large and small. It also is responsible for making sure the nation’s financial system remains safe and sound.

President Bush has put his imprint on the Federal Reserve. He selected Chairman Ben Bernanke, who came to the job on Feb. 1, to replace Alan Greenspan and has either appointed or reappointed each of the people on the Fed’s seven-member board.

AP-ES-05-18-06 1719EDT