Diamond, Raskin, Yellen nominated to Fed board

Choosing Diamond and Raskin, who lack monetary policy experience, "is a symptom of broadening the Fed's responsibilities," Alice Rivlin, a former Fed vice chair, told the Wall Street Journal. "The Fed's got a lot on its plate at the moment."

Raskin did write her undergraduate thesis on monetary policy and spent four years at advising banks on regulatory issues with Promontory Financial Group, according to the WSJ. 

Some Fed observers say the central bank is taking on a more activist role to set and enforce regulations. Others say Fed Chairman Ben Bernanke runs the show and the nominations merely reflect the president's focus on assembling a team tough on regulation instead of an effort to put his stamp on monetary policy. 

Yellen served on the board from 1994 to 1997 with Alan Greenspan and was chairwoman of the Council of Economic Advisers from 1997 until 1999 under President Bill Clinton. 

Diamond has been on MIT's economics faculty since 1966 and is the author of 12 books, including one on saving social security with Peter Orszag, chief of the Office of Management and Budget. 

Raskin is chairwoman of Federal Legislation Committee for the Conference of State Bank Supervisors and the Regulatory Restructuring Task Force and the Consumer Financial Products Agency Task Force. She also served as counsel to the Senate Banking, Housing and Urban Affairs Committee.