President Barack Obama plans to nominate Kathryn Dominguez, an economist who has written widely on foreign-exchange policy, to be a governor on the Federal Reserve Board in Washington.
Dominguez, a professor at the University of Michigan in Ann Arbor, will join Allan Landon, former chief executive officer of the Bank of Hawaii, in awaiting approval by the Senate. Their confirmations would bring the Fed Board to its full complement of seven members for the first time since August 2013.
The White House announcement on Monday comes as the Fed nears its first interest-rate increase since 2006. The role of a strengthening dollar as a headwind for U.S. exports and growth has featured prominently in the Fed’s deliberations on economic conditions.
“She’s a good, solid, technical economist, well established in her profession with a very excellent research track record,” said former Fed Vice Chairman Alan Blinder, who now teaches economics at Princeton University.
Dominguez’s confirmation would bring another economist with an international focus to the Board, alongside Vice Chair Stanley Fischer, former head of the Bank of Israel, and Governor Lael Brainard, who previously served as U.S. Treasury undersecretary for international affairs.
Fed officials say they set monetary policy appropriate for the U.S., while acknowledging that their decision to tighten may cause volatility in overseas markets.
“She is one of the leading researchers in the field of international foreign-exchange markets and efforts by governments to manage currency values,” said Michael Klein, a professor at Tufts University’s Fletcher School in Medford, Massachusetts, who’s known Dominguez for more than 20 years.
Fed governors are nominated by the president and confirmed by the Senate.
Camden Fine, president of the Independent Community Bankers of America, a Washington-based group representing more than 6,500 community banks, said he would urge Senator Richard Shelby, the Alabama Republican who chairs the Senate Banking Committee, to schedule a hearing as soon as possible.
Torrie Miller, a spokeswoman for the Senate banking panel, said Shelby “will carefully review the nomination, and the committee will consider it at an appropriate time.”
Before joining the University of Michigan’s Gerald R. Ford School of Public Policy in 2004, Dominguez was a visiting academic at the London School of Economics and Political Science. She has also taught at the University of California at Berkeley and at Harvard University’s Kennedy School of Government.