Mr Kohn has been on the Fedâs board since August 2002 and held the post of vice-president from June 2006.
Ben Bernanke, chairman of the Fed, said that the US and the Fed need to acknowledge the importance of the departing post holderâs contribution to public service in the US during the last 40 years.
âMost 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,â he explained.
âIn addition, Don helped lead the stress tests of major financial institutions; he directed the board's ongoing efforts to increase the
transparency of the Fed; and he has been leading an international effort within the Bank for International Settlements to help central banks focus on key issues and responses to the crisis.â
Previously, Mr Kohn worked in numerous positions with the Fed including director of the Division of Monetary Affairs and deputy staff director for Monetary and Financial Policy.
By Jim Ottewill