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Michael
Poole
PCE Investment Banking |
Florida Dealmaking: Trends
& Deals
Federal Reserve: Role
of a Board Member
January
13, 2004
One of
the great privileges in my business career has been to serve for
the past six years on the board of the Federal Reserve Bank of Atlanta,
Jacksonville Branch.
During this time, our U.S. economy has held up and performed admirably
despite having dealt with the Asian flu, the Internet bubble, the
9-11 crisis, and Y2K. Having had a front row seat for all of these
events and many more has given me a rare insight into the incredibly
impressive role the FED plays into our daily personal and professional
lives.
The Federal Reserve System might be one of the last vestiges
of trust in our society. When some of the polls are showing
declining trust and respect for our elected officials and the institutional
foundations of our communities, our financial regulatory organization
remains strong and held in high esteem. Many will rush to credit
Chairman Alan Greenspan, but in their haste would overlook the multitude
of individuals that keep our monetary system running everyday.
During my tenure, I have not written about the insights into the
economy due to the confidentiality of our discussions. However,
I do want to share with you the role of a board member. My position
was one of seven directors, each representing different economic
industries and regions of the State. The Board meets on a monthly
basis to report on the economic conditions of our individual communities.
Prior to meeting, members are given a list of questions from the
chief economist of the Atlanta Bank. The questions are directed
at special topics of interest. These issues vary from inventory
levels, to the hiring environment, and everything connected to the
economy. Our written reports are collated with all of the branches
and main banks, and summarized in a report known as the "Beige
Book". (Its name is derived from the color of the cover, a
replacement of the red cover that was disliked by a former Chairman
of the Fed. The new color, beige, was not chosen with the analysis
given to interest rates, but was the result of a Federal Reserve
Bank having an oversupply of beige cover stock.) the Beige Book
is read by all of the Fed Governors, Chairman Greenspan, and the
Federal Reserve Bank presidents.
The Beige Book and the FED's economic data are the 'bibles'
to any decision maker wanting to tap into the economic data.
You can read the same Beige Book as Chairman Greenspan, by visiting
the websites provided by the FED. Here is the link to the home page
of the Federal Reserve Bank of Atlanta, http://www.frbatlanta.org/
. The other recommended site is that of the main website of the
Federal reserve System, which represents all of the 12 Federal Reserve
districts in the Country. ( http://www.federalreserve.gov/general.htm
)
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