Sen. Dodd says hopes for progress on Fed nominees

WASHINGTON (Reuters) - The chairman of the Senate Banking Committee said on Wednesday that he hoped for "progress" on nominees to the Federal Reserve Board, but offered no details on when his panel might vote on them.

Sen. Christopher Dodd, a Democrat from Connecticut, said he hoped to move on a number of nominees for top spots at various agencies, including the Securities and Exchange Commission. "We hope to have progress on the Fed nominees as well," he added.

Two seats on the normally seven-person Fed Board of Governors are currently vacant, and Fed Governor Frederic Mishkin has said he will step down effective August 31.

Bush nominated banker Elizabeth Duke and financial services executive Larry Klane to fill the two vacancies in May of last year. In addition, he nominated Fed Governor Randall Kroszner, whose term has expired but who may remain in office until a successor is appointed.

Dodd said he was working in consultation with the White House on the Fed nominees. He made the comments at a committee meeting called to vote on other pending nominations that was postponed because the panel was unable to reach a quorum.

Some analysts have expressed concern that the Fed may be strained as a thinly staffed board addresses an economic slowdown, mounting inflation pressures, a credit crunch, and cracks in the supervision of financial companies.

The White House has been pressing Dodd, whose committee must send the nomination to the full Senate for a vote, to act. Dodd, however, has indicated he is in no rush to bring them to a vote.

"They can operate with four," he told reporters earlier this month

If the Senate does not act on the nominations this year, whoever wins the presidential election in November would be able to select new nominees.

(Reporting by Rachelle Younglai; Editing by Leslie Adler)