UK appoints former White House adviser as Bank of England rate-setter

Thursday 15 May 2014 14.38
Kristin Forbes appointed as a member of the Bank of England's rate-setting Monetary Policy Committee.
Kristin Forbes appointed as a member of the Bank of England's rate-setting Monetary Policy Committee.

Britain's finance minister named former White House adviser Kristin Forbes as a member of the Bank of England's rate-setting Monetary Policy Committee.

Ms Forbes was an economics professor at the Massachusetts Institute of Technology.

She was the youngest ever person appointed to the White House's Council of Economic Advisors, where she served President George W Bush from 2003 to 2005.

She fills the vacancy left after finance minister George Osborne promoted an external member of the committee, Ben Broadbent, to be the BoE's deputy governor for monetary policy once incumbent Charlie Bean retires next month.

Mr Osborne has looked abroad for other senior BoE appointments, hiring Governor Mark Carney from the Bank of Canada and International Monetary Fund official Nemat Shafik as a deputy governor.
              
He also appointed Britain's European Union ambassador, Jon Cunliffe, as a deputy governor.
              
"Dr Kristin Forbes is an economist of outstanding ability with real practical experience of policy making," Mr Osborne said in a statement.
              
Ms Forbes will start on July 1 and serve a three year term. With Shafik, the appointment means the nine member Monetary Policy Committee will have two women on it for the first time in around a decade.
              
As well as the White House and academia, Ms Forbes has also worked for the World Bank, Morgan Stanley and the US Treasury.
              
Her academic research has focused on financial crises, macro prudential regulation and capital flows.
              
Britain's finance ministry said 34 people, including 10 women, applied for the role, which was advertised in April.
              
Mr Carney said in a statement that he welcomed Ms Forbes's appointment.