Simone Baribeau Not quitting just yet

Fans of Donald Kohn, second in command at the Federal Reserve, have a temporary reprieve today. Mr Kohn, who was slated to leave the Fed in a couple weeks, will now stay on perhaps until September.

Here’s the Fed’s statement:

Vice Chairman Donald L. Kohn announced on Friday that, at the request of Federal Reserve Chairman Ben S. Bernanke, he plans to remain on the Board until a new Governor is appointed but to leave no later than September 1. He had announced in March that he intended to resign at the expiration of his term as Vice Chairman on June 23, 2010. While he remains on the Board as a Governor, he will continue to participate in all Board and Federal Open Market Committee meetings.

Janet Yellen, now San Francisco Fed president, was nominated by President Barack Obama back in April to fill the soon-to-be vacant slot, but so far, there have been few visible moves to get the Senate confirmation process in motion – and Republicans have been actively obstructionist in confirming Obama picks to any government post.

At the same time as Ms Yellen’s nomination, two others had been tapped to fill the long empty Fed governor seats, but, like Ms Yellen, the Senate confirmation process hasn’t been set in motion.

If Ms Yellen (or the others) are not confirmed before September 1, the seven member Fed board would be short three members.

Monetary policy risks becoming lonely work.