Robert Black
President of the Federal Reserve Bank of Richmond
In office
1973–1992
Preceded byAubrey Heflin
Succeeded byJ. Alfred Broaddus
Personal details
Born1927 (age 96–97)
Hickman, Kentucky, U.S.
EducationUniversity of Virginia (BA, MA, PhD)

Robert P. Black (born 1927), a native of Hickman, Kentucky, was the fifth president (1973–1992) of the Federal Reserve Bank of Richmond, the headquarters of the Fifth District of the Federal Reserve System.[1] He was preceded in that position by Aubrey N. Heflin and succeeded by J. Alfred Broaddus (1993–2004) and Jeffrey Lacker (August 1, 2004 – April 4, 2017).[2][3]

Education and teaching

After cutting short his initial studies at the University of Virginia and serving in the United States Army, Black returned to UVA and earned a bachelor's degree, master's degree, and doctorate in economics. In 1955 he taught for one year at the University of Tennessee. He completed his Ph.D. dissertation in 1954 after beginning his work at the Richmond Federal Reserve Bank.

Career and community activities

At the Fed, Black became an assistant vice president, vice president, and first-vice president before becoming the president of the FRB Richmond branch. Black and his two successors as president of the Richmond Fed, J. Alfred Broaddus[4] and Jeffrey Lacker, discussed in an interview for the Richmond Times-Dispatch the changes that occurred in economic trends, the banking community, and the city of Richmond during their tenures at the bank.[5]

According to Charles L. Weise, in April 1978, following President Carter's announcement of an anti-inflation package, the economist Stephen Axilrod, who was the FRB Staff Director for Monetary and Financial Policy, argued that a reduction in the target range for M1 would add credibility to the administration's inflation targets, while an increase in ranges "would not appear supportive" of the program. Robert P. Black, then president of the Federal Reserve Bank of Richmond, urged the Federal Open Market Committee to focus on inflation to take advantage of the fact that "everybody thinks that the administration, Congress, and the Federal Reserve are all committed to fighting inflation as a primary target." The Fed did indeed begin to tighten in the summer of 1978. By August the federal funds rate began to rise at a rate faster than the increase in inflation for the first time since the 1974 disinflation attempt.[6][7]

In 1990, Black, who was considered an "inflation hawk" testified in support of United States House of Representatives Joint Resolution 409, sponsored by Congressman Stephen Neal, a Democrat from North Carolina, which would have required the Federal Reserve Bank to achieve zero inflation within five years of passage.

He was the first economist to become a Richmond FRB president. As president of the Federal Reserve Bank of Richmond his opinion as an inflation hawk was highly respected, and he was often interviewed about the direction of the U.S. economy.[8] He served on the board of directors of the Richmond Eye and Ear Hospital, Retreat Health Systems, the Virginia Inter-Government Institute, the Governor's Commission on Defense Conversion and Economic Adjustment, and the Virginia Economic Recovery Commission. He was a member of the advisory boards of the Health Corporation of Virginia, the Center for Advanced Studies of the University of Virginia, and J. Sargeant Reynolds Community College Educational Foundation. He served on the board of governors and executive committee of the Capital Area Assembly and was a board trustee of the Academy for Economic Education and board chairman of Virginia United Methodist Homes.

Publications and speeches

Robert P. Black's contributions to the Federal Reserve Bank of Richmond's Economic Review include:

  • Jan/Feb, 1991

Reflections on Deposit Insurance[9]

  • Jul/Aug, 1990

Reflections on the Strategy of Monetary Policy[10]

  • Jan/Feb, 1990

In Support of Price Stability[11]

  • Sep/Oct, 1987

The Fed's Anti-Inflationary Strategy: Is it Adequate?[12]

  • Jul/Aug, 1984

The Fed's Mandate: Help or Hindrance?[13]

  • Sep/Oct, 1981

Monetary Policy – The Possible and the Impossible [14] A Federal Reserve president wields influence.[5]

References

  1. ↑ "Past Presidents - Federal Reserve Bank of Richmond". www.richmondfed.org. Retrieved 31 May 2017.
  2. ↑ "Robert P. Black – Biography of a person who figures prominently in the Federal Reserve's history". www.federalreservehistory.org. Retrieved 13 December 2016.
  3. ↑ "Robert P. Black (1973–1992) – Federal Reserve Bank of Richmond". www.richmondfed.org. Retrieved 13 December 2016.
  4. ↑ "Under Pressure" (PDF). Retrieved 31 May 2017.
  5. 1 2 "Jeffrey M. Lacker, J. Alfred Broaddus Jr. and Robert P. Black". Richmond Times-Dispatch. Retrieved 13 December 2016.
  6. ↑ Weise. "Political Pressures on Monetary Policy" (PDF). Vol. 4 No. 2. p. 51. Retrieved 31 May 2017. Nelson interprets the Fed's advocacy of action from the administration as evidence that he held a "non-monetary" view of inflation. But it may also have been a response to the Fed's belief that it lacked political support for moving against inflation on its own. This would explain the Fed's increased willingness to raise interest rates in 1978 when the Carter Administration unveiled a series of anti-inflation packages. In April, following the president's announcement of an anti-inflation package, the staff economist Stephen Axilrod argued (and Miller concurred) that a reduction in the target range for M1 would add credibility to the administration's inflation targets, while an increase in ranges "would not appear supportive" of the program (Transcript 4/18/1978, 27). Robert P. Black, president of the Federal Reserve Bank of Richmond, urged the Committee to keep its focus on inflation to take advantage of the fact that "everybody thinks that the administration, Congress, and the Federal Reserve are all committed to fighting inflation as a primary target" (Transcript 5/16/1978, 19). The Fed did indeed begin to tighten in the summer of 1978. Romer and Romer (1989) identify August 1978 as the beginning of a contractionary period in monetary policy. While the transcripts around that time do not indicate that the Fed saw itself as making a dramatic policy change, the federal funds rate began to rise at a rate faster than the increase in inflation for the first time since the 1974 disinflation attempt.9{{cite web}}: CS1 maint: location (link)
  7. ↑ Weise, Charles L. "Political Pressures on Monetary Policy During the US Great Inflation†" (PDF). Retrieved 31 May 2017.
  8. ↑ "Richmond Fed president sees steady recovery. (Robert P. Black, Richmond Federal Reserve) (Brief Article)". 22 June 1992. Archived from the original on 16 November 2018. Retrieved 16 December 2016.
  9. ↑ "Reflections on Deposit Insurance – Economic Review, Jan/Feb, 1991 – Federal Reserve Bank of Richmond". www.richmondfed.org. Retrieved 13 December 2016.
  10. ↑ "Reflections on the Strategy of Monetary Policy – Economic Review, Jul/Aug, 1990 – Federal Reserve Bank of Richmond". www.richmondfed.org. Retrieved 13 December 2016.
  11. ↑ "In Support of Price Stability – Economic Review, Jan/Feb, 1990 – Federal Reserve Bank of Richmond". www.richmondfed.org.
  12. ↑ "The Fed's Anti-Inflationary Strategy: Is it Adequate? – Economic Review, Sep/Oct, 1987 – Federal Reserve Bank of Richmond". www.richmondfed.org. Retrieved 13 December 2016.
  13. ↑ "The Fed's Mandate: Help or Hindrance? – Economic Review, Jul/Aug, 1984 – Federal Reserve Bank of Richmond". www.richmondfed.org. Retrieved 13 December 2016.
  14. ↑ "Robert P. Black – Author – Federal Reserve Bank of Richmond". www.richmondfed.org. Retrieved 13 December 2016.
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