Denis M. Hughes, a New York labor leader, was named Monday to chair the Federal Reserve Bank of New York’s board of directors.

Instead of a résumé filled with corporate or financial experience, as has been typical of his predecessors, Hughes is president of the New York State AFL-CIO. He succeeds Stephen Friedman, who resigned from the job in May after drawing criticism for his simultaneous service as a director of Goldman Sachs and for buying stock in the company even after it became regulated by the New York Fed.

The board of directors of the regional Federal Reserve banks serves mainly an advisory role, sharing with bank presidents its views of economic conditions and business trends. The directors have no role in setting monetary policy or determining how banks are regulated, though they select the president of the bank, who does have those powers, subject to approval by the Fed board of governors in Washington.

In the past, the chairman of the New York Fed was usually chosen from the corporate or financial elite. Friedman was a former Goldman Sachs chief executive. Before him, Jerry I. Speyer was one of New York’s leading developers of commercial real estate as head of Tishman-Speyer. Another recent chairman was Peter G. Peterson, the billionaire founder of private equity firm the Blackstone Group. A recent exception to the rule: John E. Sexton, who served between Speyer and Peterson, is president of New York University.

Hughes, as leader of a labor union that represents 2.5 million workers, is an even greater departure from that tradition. But he is no newcomer. Hughes has been on the New York Fed board since 2004 and deputy chairman since 2007. He was named acting chairman of the board in May when Friedman stepped down.

Completing the move away from having people from the financial world lead the New York Fed board of directors, Lee C. Bollinger, the president of Columbia University, was named deputy chairman on Monday.

The unusual mix of public and private governance of the regional Fed banks was put in place by the Federal Reserve Act in 1913, and some in Congress are looking to revisit how the regional banks are structured as they consider broader reforms to the financial world. Board members such as Hughes and Bollinger are “Class C” directors, chosen by the presidentially appointed Fed board of governors in Washington, and to represent business, industry, agricultural, labor or consumer interests.

The boards also include “Class A” directors, who lead private banks, and “Class B” directors, who are business leaders chosen by bankers.

For more information about the Federal Reserve take a look at the Federal Reserve Tiger Team site.  Ben Taylor will be updating the site soon but go ahead and take a look at it and get signed up for the FRTT mailing list so that you don’t miss any updates.

August 3, 2009

Dear Friend of Liberty,

For the first time in nearly 100 years, the secretive Federal Reserve is a mainstream topic for debate.

Results of a recent survey released by Rasmussen Reports show that 75% of Americans support thoroughly auditing the Fed.

Read our press release about this great news here.

Before Campaign for Liberty started just a little over a year ago, no one could have imagined that such a survey result would be possible.

In less than six months since Ron Paul’s Audit the Fed bill was introduced, we have reached millions of Americans through phone calls, mailings, and radio and television interviews. Combined with tremendous grassroots efforts including having a presence at events, contacting Congress, spreading the word on the internet, and petitioning, we are achieving true, lasting change by fighting for accountability from the cause of so many of our nation’s struggles.

The House of Representatives is already out for its August recess, and the Senate will follow at the end of this week. This month-long recess gives us a perfect opportunity to challenge those who have not yet cosponsored to join the growing national movement to require transparency and accountability from Washington’s most shrouded institution.

Members of Congress will be hosting townhalls and appearing at fairs and other local events as they travel their districts to promote their agenda. C4L members should be at every stop along the way to push Audit the Fed.

Stay tuned to CampaignforLiberty.com in the coming days for more information on how we intend to take advantage of the August recess to promote issues including Audit the Fed.

One indication of our success has been the number of ardent Fed supporters who have recently attacked both Dr. Paul and the idea of a thorough audit.  When HR 1207 was first introduced, many of them believed it was a fringe bill that would never gain traction.  Your efforts have proved them wrong.

Click on the video below to see Congressman Paul respond to Fed Chairman Ben Bernanke and these other critics in his latest speech on the House floor.

http://echo4.bluehornet.com/ct/5115408:6044923655:m:1:379778286:1A15E3C7363F77E9D54AA699D93009DA

If you have not yet signed our Audit the Fed petition or need contact details for your members of Congress, check out our Audit the Fed action page here. You can also find information on which representatives and senators have cosponsored HR 1207 and S 604. Be sure to send the link to family and friends and ask them to spread the word!

We are winning this fight, and Audit the Fed is only the beginning of our national efforts. With our membership continuing to grow by leaps and bounds as more Americans dedicate themselves to reclaiming their neighborhoods and their country, the political establishment hasn’t seen anything yet.

Together, we can continue to push back big government tyranny and restore the freedoms our Founders fought to give us.

Thank you for all of your time and dedication, and keep up the great work!

In Liberty,

John F. Tate

President

P.S. Don’t forget to visit our Audit the Fed action page for congressional information, our petition, videos, letters to the editor, grassroots actions, event reports, and more!