Atlanta Fed leadership search resets under new U.S. central bank chairman

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Atlanta Fed leadership search

Highlights

The search for the next Atlanta Fed president has been reset and delayed until Warsh is sworn in as chairman to allow his review.
The committee emphasizes a thorough candidate vetting process amid rising political pressure to influence central bank appointments under the Trump administration.
Any White House or Treasury effort to sway regional Fed president appointments risks undermining the Fed’s political independence from Washington.

Atlanta Fed search timeline and oversight

As first reported by CNBC, the search for the next president of the Federal Reserve Bank of Atlanta is reset after Warsh becomes chairman of the U.S. central bank, citing two unnamed people familiar with the matter. The extent of any changes to the process or the candidates under consideration is not clear.

People familiar with the search tell Reuters the process is nearing a conclusion in the spring, but the hiring is delayed until Warsh is sworn in so that he can review any proposed candidate. Although regional Federal Reserve bank presidents are chosen by local boards of directors, they must be approved by the Washington-based Board of Governors.

The Atlanta Fed does not comment directly on the matter, but forwards a statement from board chair Gregory Haile. Haile says the committee is conducting a thorough and deliberate search for the next president of the Federal Reserve Bank of Atlanta, while focusing on selecting the best candidate for the Sixth District and protecting the integrity of the process.

Political stakes for Fed independence

The search to replace former Atlanta Fed President Raphael Bostic, who retires on February 28, takes on added significance because of the Trump administration's push to gain influence over the Fed and monetary policy. That effort includes the attempted firing of Fed Governor Lisa Cook and pressure through a criminal investigation of former Chair Jerome Powell that is later dropped, while Powell remains on the Fed board.

The Fed's 12 regional bank presidents vote on interest rate policy on a rotating basis and oversee large staffs that handle operations and extensive research across a broad range of topics. Because these officials are hired outside the direct presidential appointment and Senate confirmation process used for the Board of Governors, they are seen as important to the Fed's political independence and as a channel for information on economic conditions around the country.

Any coordinated effort by the White House or the Treasury Department to shape who fills regional Federal Reserve posts would alter a system that largely stays outside Washington political battles. The structure is designed to act as a check on centralized power within the U.S. central banking system.

Our earlier article on the Atlanta Fed president search reset under Chair Kevin Warsh explained that the vacancy gave him an early opening to shape the Fed’s leadership direction. We noted that the Board of Governors has a say in the selection and that the Atlanta post stands out as a rare near-term chance for Warsh to influence the FOMC’s composition and the institution’s broader policy agenda.

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