Changing of the Guard at the Cleveland Federal Reserve

Loretta Mester's Retirement

Loretta Mester, the current president of the Cleveland Federal Reserve, has announced that she will be stepping down from her position in June 2024. The regional Fed bank made this announcement on Wednesday, stating that they will commence a nationwide search for a suitable replacement.

A Distinguished Career

Mester took on the role of president at the Cleveland Fed back in June 2014. Throughout her career, she has been a dedicated member of the Federal Reserve. Starting as an economist at the Philadelphia Fed in 1985, Mester worked her way up to become the top economic advisor to the president of the Philadelphia Fed. Her retirement signposts a changing landscape within the Federal Reserve.

The Changing Face of the Fed

In recent months, several regional Fed banks have seen new leadership appointments. The Boston, Chicago, Dallas, and Kansas City regional banks have all welcomed new leaders since last summer. The St. Louis Fed, however, is still searching for a president to replace James Bullard, who departed in August.

A Decentralized System

It's important to note that the Federal Reserve comprises not only a seven-member board of governors in Washington but also 12 regional banks spread across the country. This decentralized structure addresses concerns raised in Congress, ensuring that decisions over money and credit are not solely influenced by urban areas. The rotating votes on interest-rate decisions are held by the presidents of these regional banks, with one exception—the president of the New York Fed, who is always a voting member and holds the title of vice chair for the Federal Open Market Committee.