
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, April 23, 1994                   TAG: 9404250152
SECTION: BUSINESS                    PAGE: A-4   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

CLINTON APPOINTS 2 TO FED

President Clinton picked two new members for the Federal Reserve on Friday, choosing economists that analysts say may help shift the board away from a hard-line policy of raising interest rates to prevent inflation.

In the first Democratic nominations to the Fed in 14 years, Clinton chose White House adviser Alan Blinder and Berkeley Professor Janet Yellen.

He designated Blinder, a former Princeton economics professor, vice chairman - possibly putting him in line to become chairman when Alan Greenspan's term as chairman expires in March 1996.

Shortly after his appointment, Blinder told reporters he sees no signs of significant inflation.

The appointments, which are subject to Senate confirmation, would fill two vacancies on the seven-member Federal Reserve Board of Governors. The other five were appointed by Republican Presidents Reagan and Bush.

Greenspan praised the appointments, calling both nominees ``eminently qualified economists.''

The current board has used interest rate increases to guard against a resurgence of inflation. It has increased short-term rates three times since February. The administration contends that inflation risks are slim.

Blinder and Yellen are viewed as pragmatists rather than strict inflation-fighters.

Yellen would replace Wayne Angell, whose term expired in February. Blinder would replace David W. Mullins, the former vice chairman who resigned in February to join a private investment management firm.

by CNB