Burns Hits Plan to Change Appointment
Federal Reserve chairman Arthur Burns yesterday reversed his position and came out against making the chairmanÛªs term coincide more closely with that of the President.</br></br>ÛÏThe consequence,Û he told a House Banking Subcommittee, ÛÏcould be some politicizing of the Federal Reserve, and perhaps some erosion of the independence of the nationÛªs monetary authority.Û</br></br>Decisions on the nationÛªs money supply, he said, might end up being made by some ÛÏpolitical hack in the basement of the White HouseÛ.</br></br>Last year Burns told Congress the-Federal Reserve Board had ÛÏno objectionÛ to making the two terms roughly coincide. Explaining this shift of position, he said he took the earlier stand partly to avoid any implication he was fighting for continuation of his own job.</br></br>The seven members arc appointed for 14-year terms by the President, -subject to Senate confirmation, The President selects the chairman from among the members for four-year terms without need of Senate approval. Often the terms do not coincide with his.