Philadelphia Fed Seeks Successor for Harker, Reports Reuters

By Michael S. Derby

NEW YORK – The Federal Reserve Bank of Philadelphia announced on Wednesday that it is beginning a search for a new leader to succeed Patrick Harker, who is set to retire next summer.

Anthony Ibarguen, CEO of Quench USA and chair of the Philadelphia Fed’s board of directors, stated in a press release, "We will run an open and inclusive nationwide search including broad input from the Philadelphia Fed district. Our goal is to find a new leader who will continue President Harker’s commitment to our communities and the promotion of a strong U.S. economy."

Harker, who has served as president of the Philadelphia Fed since 2015, is scheduled to leave the bank on June 30, 2025. This retirement is in accordance with central bank regulations that generally require regional Fed presidents to step down when they reach the age of 65. Such mandatory retirements often lead to leadership changes in regional Fed banks; the last notable transition was Loretta Mester’s departure from the Cleveland Fed last June.

The press release indicated that the succession process will be managed by board members from the regional Fed bank who are not affiliated with any firms that are regulated by the U.S. central bank. Each of the 12 regional Fed banks, which operate in a quasi-private framework, is overseen by boards composed of members from the private sector.

Before his tenure at the Philadelphia Fed, Harker was a member of its board and held academic positions, having an educational background in engineering.

In recent remarks, Harker advocated for the Federal Reserve to initiate gradual interest rate cuts in order to better align its monetary policy with the declining inflation pressures.

The Philadelphia Fed’s press release also emphasized that those involved in the search will undertake a thorough, rigorous recruitment process to ensure a diverse pool of qualified candidates with a strong dedication to public service.

Recruiting for new regional Fed leadership has become more complex due to newly implemented ethics guidelines that restrict how policymakers and senior staff manage their personal finances. As of last year, the Philadelphia Fed’s president had an annual salary of $481,000.

Filling regional Fed vacancies has historically been marked by concerns over transparency. While the board of governors’ members are nominated by the U.S. president and confirmed by the Senate, the process for appointing regional Fed leaders often occurs behind closed doors, with little public clarity regarding potential candidates.

Recent leadership changes at regional Fed banks have seen a trend toward candidates with more extensive backgrounds in financial markets, as exemplified by the current presidents of the Dallas, Cleveland, and St. Louis Fed banks.

Any new leader chosen by the Philadelphia Fed’s board will also require approval from the Fed’s board of governors.