A Change at the Top: Atlanta Fed Leader Steps Down
Leadership Changes at the Fed
Raphael W. Bostic, the president of the Federal Reserve Bank of Atlanta, has announced his departure at the end of February. This move leaves another spot open at the top of the central bank, adding to the recent changes in leadership. Bostic has been in this role since 2017, and his exit comes at a time when the Fed is under pressure from the White House to cut interest rates.
Recent Resignations and Appointments
Bostic is not the only one leaving. Adriana Kugler, another Fed official, resigned earlier this year. Her spot was filled by Stephen I. Miran, a top economic adviser to President Trump. Critics are worried that Miran's appointment might weaken the Fed's independence from political influence.
President Trump has also tried to remove Lisa D. Cook, another Fed governor, over allegations of mortgage fraud. The Supreme Court has allowed Cook to keep her job for now, and they will hear arguments about the case early next year.
Selection Process for Bostic's Replacement
Unlike the Fed's board members in Washington, Bostic's replacement will not be chosen by the president or require Senate confirmation. The heads of the 12 regional Reserve Banks are selected by local business leaders. The Atlanta Fed's board will form a search committee to find a new president.
Bostic's Tenure and Controversies
Bostic's decision to leave is notable because it comes just before the board is set to vote on the reappointment of all 12 policymakers. Bostic, who made history as the first Black and openly gay president of a regional Fed bank, could have stayed for another six years before hitting the mandatory retirement age of 65.
During his time as president, Bostic was involved in a trading scandal that led to stricter rules for Fed officials. The Fed's internal watchdog found that Bostic had violated the central bank's rules on financial transactions and had created the appearance of using confidential information for personal gain. Bostic has maintained that he was unaware of the specific trades or their timing.
Praise from Fed Chair Jerome H. Powell
Jerome H. Powell, the Fed's chair, praised Bostic's tenure, saying that he had enriched the policy-making committee's understanding of the economy and strengthened the institution. Powell's own term ends in May, and President Trump is in the process of picking his replacement.