St. Louis Fed Announces Formal Search for New President, Reports Reuters

By Michael S. Derby

NEW YORK – The Federal Reserve Bank of St. Louis announced on Monday that it has officially begun the search for a new leader to succeed James Bullard, who served as the longest-tenured central bank official and was a prominent voice on monetary and economic policy.

Bullard made an unexpected announcement regarding his resignation in July and officially stepped down on August 14 to take on the role of dean at a business school in Indiana.

Jim McKelvey, chairman of the St. Louis Fed Board of Directors and head of the search committee, indicated in a press release that the process to find Bullard’s replacement will be "robust, transparent, fair, and inclusive."

The bank has engaged the executive search firm Spencer Stuart to assist in finding a new leader, with the process being overseen by board members who do not have ties to financial institutions regulated by the Fed.

The Federal Reserve consists of 12 regional banks that function as quasi-private entities, all under the supervision of the board of governors in Washington. Each bank also has its own board of directors who come from the private sector.

Regional Fed bank presidents play a critical role in setting central bank interest rate policy, gathering economic and financial information in their districts, and regulating local banks.

In recent years, there has been increasing pressure for regional Fed banks to enhance diversity within their leadership teams.