THE DAILY FED
OMB Nomination Moves
The Senate Governmental Affairs Committee today by voice vote reported the nomination of Franklin Raines, currently vice chairman of Fannie Mae, to be the next Office of Management and Budget director. He would succeed former OMB Director Alice Rivlin, who last month was confirmed as vice chairwoman of the Federal Reserve. But two senators on the Governmental Affairs panel were recorded as expressing reservations about Raines' nomination--including Budget Chairman Pete Domenici, R-N.M., who said he reserved the right to vote against Raines unless the administration provided a statement specifying the size of budget cuts needed to end the deficit by 2002. Domenici expressed the hope that others would join him. A similar controversy prompted more than 40 Senate Republicans to vote against Rivlin's Federal Reserve nomination last month.