The Wall Street Journal reports on Saturday that former Federal Reserve Chairman Paul Volcker is playing a "smaller-than-expected role" in forming economic policy for the White House than many had expected during the campaign. Volcker, a supporter and advisor to the Obama campaign, heads the Economic Recovery Advisory Board, a panel created by the President that has still not had a formal meeting:
Treasury Secretary Timothy Geithner unveiled the administration's plans for handling troubled financial institutions and the housing crisis without seeking input from Mr. Volcker, associates say. "Paul was surprised" at the failure to consult him, particularly on issues of financial rescue after his dominant role in resolving financial crises in the 1980s, says one person who has spoken to Mr. Volcker recently.
On the eve of one announcement, a Wall Street executive ran into Mr. Volcker at a cocktail party and asked what he expected from the Treasury secretary's imminent announcement. "I have no idea what Tim's going to say," he responded, according to somebody there.
