Right man at the right time.

• Position: Off The News

You don't have to be much of a Washington insider to recognize the extent to which the Bush high command is nervous about the U.S. economy. Their greatest concern: whether the long-awaited capital spending surge kicks in this summer, setting up the foundation for a more broad-based 2004 expansion. Originally, Bush strategists had bet that the corporate CEO community would start their capital spending plans once the Iraq war and other geopolitical uncertainties were settled. What has become clear is that other factors have also been at work in restraining corporate risk-taking, including the uncertainties relating to corporate governance and accounting issues.

That's where former President of the New York Federal Reserve William McDonough comes in. Bush insiders have quickly concluded that the faster corporate governance issues can be settled with credibility, the sooner the U.S. corporate community will move ahead with capital spending. McDonough, who had planned to retire from public life beginning this summer, jumped to the top of the list of candidates with the stature and respect to spearhead an effort to resolve the...