An interview with a Federal Reserve policy-maker. (Federal Reserve Bank of Philadelphia President Edward G. Boehne)(Interview)

In January Federal Reserve Bank of Philadelphia President Edward G. Boehne begins a one-year term as a voting member of the Federal Open Market Committee, the Fed's policy-making body which, among other things, establishes the interest rate paid by banks, businesses and consumers. The committee is comprised of the seven-member Board of Governors, led by Chairman Alan Greenspan, and each president of the 12 U.S. Reserve Banks. Only five presidents vote at the meetings: the President of the Federal Reserve Bank of New York and four other presidents, serving on a rotating basis.

Boehne, who has been with the Philadelphia bank since 1968 and became president in 1981, continually monitors the regional economy and reports to the committee when it meets every six weeks.

Boehne last week sat for an interview with staff reporter Eric Hollreiser in Boehne's Center City office which sits high above the Treasury vaults, where more than $27 trillion is processed each year.

The following are edited excerpts from that meeting.

PBJ: What's the net effect on the local economy of the mergers and acquisitions in various industries?

Boehne: There are two direct effects and …