Announcements - Federal Open Market Committee keeps federal funds rate unchanged

Federal Reserve Bulletin, Jan, 2003

FOMC DIRECTIVE

The Federal Open Market Committee decided on December 10, 2002, to keep its target for the federal funds rate unchanged at 1 1/4 percent.

The Committee continues to believe that this accommodative stance of monetary policy, coupled with still robust underlying growth in productivity, is providing important ongoing support to economic activity. The limited number of incoming economic indicators since the November meeting, taken together, are not inconsistent with the economy working its way through its current soft spot.

In these circumstances, the Committee believes that, against the background of its long-run goals of price stability and sustainable economic growth and of the information currently available, the risks are balanced with respect to the prospects for both goals for the foreseeable future.

Voting for the FOMC monetary policy action were Alan Greenspan, Chairman; William J. McDonough, Vice Chairman; Ben S. Bernanke; Susan S. Bies; Roger W. Ferguson, Jr.; Edward M. Gramlich; Jerry L. Jordan; Donald L. Kohn; Robert D. McTeer, Jr.; Mark W. Olson, Anthony M. Santomero, and Gary H. Stern.

APPOINTMENT OF NEW MEMBERS AND DESIGNATION OF THE PRESIDENT AND VICE PRESIDENT OF THE THRIFT INSTITUTIONS ADVISORY COUNCIL FOR 2003

The Federal Reserve Board on December 11, 2002, announced the names of seven new members of its Thrift Institutions Advisory Council (TIAC) and designated a new president and vice president of the council for 2003.

The council is an advisory group made up of twelve representatives from thrift institutions. The panel was established by the Board in 1980 and includes savings and loan, savings bank, and credit union representatives. The council meets three times each year with the Board of Governors to discuss developments relating to thrift institutions, the housing industry, mortgage finance, and certain regulatory issues.

The new president of the council for 2003 is Karen L. McCormick, president and CEO, First Federal Savings and Loan Association, Port Angeles, Washington. The new vice president is William J. Small, chairman and CEO, First Federal Bank, Defiance, Ohio.

The seven new members, named for two-year terms beginning January 1, 2003, are the following:

Michael J. Brown, Sr., President and CEO, Harbor Federal Savings Bank, Ft. Pierce, Fla.

Richard J. Driscoll, President, First Savings Bank, FSB, Arlington, Tex.

Curtis L. Hage, Chairman and CEO, Home Federal Bank, Sioux Falls, S.Dak.

Olan O. Jones, Jr., President and CEO, Eastman Credit Union, Kingsport, Tenn.

D. Tad Lowrey, Chairman, President, and CEO, Jackson Federal Bank, Brea, Calif.

George W. Nise, President and CEO, Beneficial Savings Bank, Philadelphia, Pa.

Robert F. Stoico, Chairman, President, and CEO, FIRST-FED AMERICA BANCORP, INC., Swansea, Mass.

Council members whose terms continue through 2003 are the following:

John B. Dicus, President, Capitol Federal Savings Bank, Topeka, Kan.

Karen L. McCormick, President and CEO, First Federal Savings and Loan Association, Port Angeles, Wash.

Kevin E. Pietrini, President and CEO, Queen City Federal Savings Bank, Virginia, Minn.

William J. Small, Chairman and CEO, First Federal Bank, Defiance, Ohio

David L. Vigren, President and CEO, ESL Federal Credit Union, Rochester, N.Y.

APPOINTMENT OF NEW PRESIDENT OF THE FEDERAL RESERVE BANK OF CLEVELAND

The Federal Reserve Bank of Cleveland has appointed Sandra Pianalto as the Bank's new president. The announcement was made on December 12, 2002, by David Hoag, chairman of the Cleveland Bank's board of directors.

The appointment was made by the directors of the Federal Reserve Bank of Cleveland and approved by the Board of Governors of the Federal Reserve System. She succeeds Jerry L. Jordan, who will retire January 31, 2003, after having served as president since 1992. She will assume her duties as president on February 1, 2003.

Pianalto has served as first vice president and chief operating officer of the Cleveland Bank since 1993. She joined the Federal Reserve Bank of Cleveland in 1983 as an economist. In 1984, she was appointed assistant vice president for public affairs, hnd in 1988 she was named vice president and secretary to the board of directors. Before joining the Bank, Pianalto was an economist at the Board of Governors and served on the staff of the Budget Committee of the U.S. House of Representatives.

In announcing the appointment, Hoag said, "Sandy Pianalto brings to her new position an extensive knowledge of monetary policy as well as a keen understanding of financial services and the changing payments system."

Robert Mahoney, deputy chairman of the Cleveland board, led the search committee to find Jordan's successor. He said, "Sandy has served this Bank well for nearly twenty years. We are proud of her accomplishments and believe that her exceptional leadership will continue to be an asset to the Fourth District and the Federal Reserve System."

"It has been my great fortune to work with Jerry Jordan," said Pianalto. "He is a thoughtful leader who inspires, teaches, and learns. I'm proud to have the opportunity to continue the tradition of excellence that has defined our Bank and our employees."