"At no time since the Great Depression have this ability and dedication been tested as they have been over the past several years," he said. "I am confident that history will judge the Federal Reserve, under the leadership of Chairman Ben Bernanke, to have met these challenges with great speed, imagination, and effectiveness."
Kohn, who received a Ph.D. in economics in 1971 from the University of Michigan, began his career as a Financial Economist at the Federal Reserve Bank of Kansas City in 1970.
He became a member of the Board in August 2002 and has served as its Vice Chairman since June 2006. From 1987 to 2002, he was a member of the Federal Open Market Committee, which is the Fed's rate setting body.
"The Federal Reserve and the country owe a tremendous debt of gratitude to Don Kohn for his invaluable contributions over 40 years of public service," Fed chairman Ben Bernanke said in a statement.
"Most recently, he brought his deep knowledge, experience, and wisdom to bear in helping to coordinate the Federal Reserve's response to the economic and financial crisis," he said.
Bernanke praised Kohn for helping lead the Fed's "stress tests" of major financial institutions last year. Kohn also directed the Board's efforts to increase the transparency of the Federal Reserve, and he has been leading an international push to help central banks focus on key issues and responses to the crisis, Bernanke added.
"I would like to express my deep appreciation for Don's friendship and counsel during some very difficult times," Bernanke said. "He will be greatly missed."
GDPPrice drop means low interest rates
