A key seat on the Federal Open Market Committee (FOMC) will soon be empty, as Raphael W. Bostic, the president of the Federal Reserve Bank of Atlanta, has announced plans to retire in February. This adds another layer of change to the US central bank’s leadership during a period of significant external pressure.
Bostic’s decision to step down, well before his term was set to expire, follows the August departure of Fed Governor Adriana Kugler. Her resignation led to President Trump appointing one of his top advisers, Stephen Miran, to the Fed’s board of governors on an interim basis. This move was seen by many as part of the administration’s broader campaign to influence the Fed’s policy.
The FOMC is the 12-member body at the heart of the Fed’s policy-making, responsible for decisions on interest rates. It includes the seven Washington-based governors, the New York Fed president, and four presidents from the other eleven regional banks on a rotating basis. Bostic’s absence will be felt in these crucial economic debates.
The White House, however, will have no direct role in filling this specific vacancy. The selection of a regional Fed president is managed by the regional bank itself. The Atlanta Fed has confirmed it will be conducting a nationwide search to find its next leader.
Bostic, 59, made history as the first African American and openly gay regional Fed president. “I’m proud of what we accomplished,” Bostic said in a statement, “to turn the lofty goal of an economy that works for everyone into more of a reality.” Chair Jerome Powell praised Bostic’s “steady voice” and “purpose-driven” public service.