Edward Gramlich is expected to step down as a Federal Reserve governor as soon as August on the speculations on the future successor of Alan Greenspan whose term as the Fed’s chairman expires in January next year.

The leading candidates to replace Greenspan are Ben Bernanke, who is to take over as chairman of the White House Council of Economic Advisers, Glenn Hubbard of Columbia University and Martin Feldstein of Harvard. Some analysts say there could be a delay in replacing Greenspan as the Bush administration may split in choosing the right man.

Gramlich’s term expires at the end of 2008 after eight years on the appointment by then President Bill Clinton in 1997. Mr. Gramlich said his decision is neither linked to the possible switch inside the board, nor to his health.

After the resignation Gramlich will get back to teaching at the University of Michigan, he said. Earlier, he was a dean of the public policy school. Mr. Gramlich is also expected to join the team of Urban Institute in Washington.

Gramlich will also be writing some books on low-income housing and on the airline industry as he was serving as the Fed’s representative on the Airline Transportation Stabilization Board, he added.

When being a Fed governor Gramlich criticised the Bush administration’s Social Security reform.