G. William Miller

George William Miller
George William Miller
Born	9 March 1925 (age 101); Sapulpa, Oklahoma, U.S.
Died	17 March 2006 (aged 81)
Occupation(s)	Executive, investment banker, government official
Years active	1945–2006
Known for	65th United States Secretary of the Treasury (1979–1981), 11th Chairman of the Federal Reserve (1978–1979)

George William Miller (March 9, 1925 – March 17, 2006) was a prominent American executive and investment banker who held the position of the 65th United States secretary of the treasury from 1979 until 1981. Affiliated with the Democratic Party, he also served as the 11th chairman of the Federal Reserve between 1978 and 1979. Miller was notably the first person to occupy both these key roles.

In 1978, President Jimmy Carter appointed him to replace Arthur F. Burns as chairman of the Federal Reserve. Unlike most predecessors who had formal training in economics or finance, Miller originated from a corporate background. Soon after his Fed appointment, he departed from the Board of Governors to assume the role of treasury secretary following the departure of W. Michael Blumenthal. His successor at the Federal Reserve was New York Fed President Paul Volcker.

Early life and career

Born in Sapulpa, Oklahoma in 1925, George William Miller was raised in Borger, Texas, where his family moved during an oil industry boom. His father transitioned from working as a taxi driver to becoming the local fire chief. Miller attended Amarillo College before earning a Bachelor of Science degree in marine engineering from the U.S. Coast Guard Academy in 1945. He served as an officer in the Coast Guard until 1949 and married Ariadna Rogojarsky in 1946.

Following his military tenure, Miller graduated at the top of his class from the University of California, Berkeley School of Law in 1952 and began practicing law at Cravath, Swaine & Moore in New York. In 1956, he relocated to Rhode Island to join Textron, Inc., a rapidly expanding conglomerate, initially as assistant secretary. He quickly progressed through leadership roles: vice president by 1957, chief financial officer in 1958, and by 1960 he was both chief operating officer and president. As CEO starting in 1968 and chairman from 1974 onward, Miller guided Textron’s growth across sectors including consumer products, industrial machinery, and aerospace. Despite facing inflationary pressures, under his leadership sales increased by 65% to reach $2.8 billion with operations distributed over 180 manufacturing facilities globally.

In Providence, Miller was actively involved with Central Congregational Church and contributed to various public service initiatives. He chaired the Industry Advisory Council for the President's Committee on Equal Employment Opportunity between 1963 and 1965, served on the National Council on the Humanities during 1966–1967, and was a member of the Club of Rome think tank. Politically engaged, he supported Hubert Humphrey's presidential bid in 1968 and had a modest role in Jimmy Carter’s campaign in 1976. After Carter’s victory, Miller led the President's Committee on HIRE which focused on employment opportunities for veterans.

Prior to his appointment to the Federal Reserve Board of Governors in 1978, Miller had spent eight years as a Class B director at the Federal Reserve Bank of Boston, reflecting Textron’s presence there. He also held positions on several corporate boards and participated actively in key business organizations such as the Business Council, Business Roundtable, Conference Board—where he served as chairman—and National Alliance of Businessmen. Furthermore, he engaged in international economic dialogues through bilateral councils like the US-USSR Trade and Economic Council and the Polish-US Economic Council.

Federal Reserve Chairman

At the onset of President Jimmy Carter’s administration, the Federal Reserve was led by Arthur Burns, a Nixon appointee. Despite Carter’s appreciation for Burns's business acumen, Burns frequently voiced criticism of the administration and placed greater emphasis on controlling inflation rather than reducing unemployment, which conflicted with Carter’s priorities. Vice President Walter Mondale compiled a shortlist of potential successors to Burns, which included three accomplished CEOs—Miller, Reginald H. Jones of General Electric, and Irving S. Shapiro from DuPont—all individuals with strong ties to Washington and experience bridging business and policy sectors. The fourth nominee was Bruce MacLaury, an economist with a background at both the Treasury Department and Federal Reserve. Ultimately, Carter narrowed his choice to Miller and MacLaury, with advisors favoring Miller for his leadership qualities despite his limited technical expertise. Miller accepted the nomination despite concerns regarding his credentials.

In December 1977, Carter publicly announced Miller as the nominee to succeed Burns, prompting mixed responses due to Miller’s relative anonymity and unclear economic stance. Miller became the first Fed chairman nominee to undergo Senate confirmation hearings, during which he faced intense examination over his qualifications and his firm support for Federal Reserve independence. Investigations were conducted into allegations involving Textron, Miller’s former employer; however, he was confirmed unanimously.

Miller assumed the role of Fed Chairman in March 1978 amid rising inflation triggered by the 1973 oil shock. Inflation rates increased from 4.9% in 1976 to 6.7% in 1977. Recognizing inflation as the foremost domestic economic challenge, Miller resisted sharp interest rate hikes that could potentially hinder economic growth. He advocated for maintaining a relatively tight federal funds rate with gradual increases, although these measures failed to significantly reduce inflation. In contrast to his successor Paul Volcker, who endorsed aggressive monetary tightening, Miller believed that recession and higher unemployment would worsen inflationary pressures and viewed the economy as fundamentally sound despite ongoing inflation.

During Miller’s leadership, the U.S. dollar experienced significant depreciation—falling nearly 34% against the German mark and 42% against the Japanese yen within less than a year—leading to a "dollar rescue package" that involved gold sales, borrowing from the IMF, and foreign currency auctions by the Treasury. This intervention provided only temporary stabilization before the dollar resumed its downward trend. The term stagflation became widely used to describe the combination of persistent inflation alongside stagnant economic growth during this period. Miller argued that contractionary measures such as steep interest rate hikes would worsen inflation while suppressing growth.

Miller’s cautious stance created friction within the Carter Administration; Treasury Secretary Blumenthal, Inflation Adviser Alfred Kahn, and Chief Economist Charles Schultze advocated for more aggressive rate increases ahead of the April 1979 FOMC meeting—a move Miller opposed. The internal disagreements became public due to media leaks, forcing President Carter to manage these conflicts.

Miller’s approach also distanced him from some colleagues; lacking a background in economics or Wall Street, he was perceived as an outsider who managed the Fed with a corporate mindset and was less inclined toward independent action compared to previous chairs. His effort to prohibit smoking during FOMC meetings was ignored by members accustomed to smoking during sessions. Notably, in 1979 he was overruled by Board members regarding an increase in the discount rate.

Economic historians generally view Miller’s brief tenure as unsuccessful. His hesitance to take firm action against inflation set the stage for Volcker’s later severe monetary tightening, which precipitated the recession from 1980 to 1982. Federal Reserve analyst Steven Beckner characterized Miller’s period as marked by expansionist policies and currency devaluation that contributed to inflation under Carter’s presidency:

Treasury Secretary

After serving slightly more than a year as chairman of the Federal Reserve, Miller was appointed by President Carter as Secretary of the Treasury in August 1979, succeeding Michael Blumenthal during a significant cabinet reorganization. Carter chose Paul Volcker to follow Miller at the Federal Reserve. Miller became the first individual to have held both of these prominent roles. During his tenure as Treasury Secretary, he is recognized for administering the Chrysler Loan Guarantee Board, overseeing a $1.5 billion government loan aimed at preventing Chrysler’s bankruptcy. This intervention generated debate over whether it rewarded poor management and its impact on trade relations between the United States and Japan. Miller conceded that government assistance to private companies was generally inadvisable but considered Chrysler a unique case. Ultimately, the company rebounded and repaid the loan ahead of schedule.

Miller also played a key role in managing the freeze and subsequent partial release of $12 billion in Iranian assets amid the Iranian hostage crisis, as well as brokering a labor agreement on wage-price controls that had been stalled for several months.

Despite these efforts, Miller’s economic strategies failed to reduce inflation or unemployment significantly, factors that contributed to President Carter’s defeat by Ronald Reagan in the 1980 election.

Later years

Following his departure from public office, Miller established G. William Miller & Co., a private investment firm based in Washington, D.C., designed to operate discreetly in the style of a Swiss merchant bank. He held various leadership positions within nonprofit organizations, including serving as treasurer of the American Red Cross, trustee and director of the Washington Opera, and chairman of the H. John Heinz III Center for Science, Economics and the Environment. Between 1990 and 1992, he was chairman and CEO of Federated Stores Inc., now known as Macy's, Inc..

George William Miller passed away on March 17, 2006, at age 81 due to idiopathic pulmonary fibrosis.

References

Department of the Treasury Resignation of W. Michael Blumenthal and Nomination of G. William Miller To Be Secretary. July 19, 1979, American Reference Library

External links