Atlanta Fed president Bostic to retire in February

Atlanta Federal Reserve president Raphael Bostic announced Wednesday that he will retire at the end of February when his current term ends.

Bostic has been at the helm of the Atlanta Fed since 2017. He is the first African American and openly gay president of a regional Federal Reserve Bank in its 111-year history.

“It has been a privilege to serve alongside President Bostic,” Fed Chair Jerome Powell said in a statement. “His perspective has enriched the Federal Open Market Committee’s understanding of our dynamic economy. And his steady voice has exemplified the best of public service — grounded in analysis, informed by experience, and guided by purpose. His leadership has strengthened our institution and advanced the Federal Reserve’s mission.”

Bostic, who is not currently a voting member, said he was convinced by his colleagues to cut interest rates last month, even as he acknowledged that he has been on record for most of the year arguing for only one rate cut as the Fed navigates higher inflation and signs of weakness in the job market.

Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments

He has warned that the Fed cannot forget that “inflation is a significant problem and we have to get that back down to our 2% target. I think we can still do it, but with each step, we get closer and closer to neutral in ways that make me uncomfortable,” he said.

Bostic has remained hawkish for most of this year, as he hears from businesses that they may pass on higher costs to consumers, which he worries could lead to higher inflation. The latest inflation data shows prices have remained sticky around 3%.

The Atlanta Fed’s board of directors will form a search committee comprised of non-banking members of its board to conduct a nationwide search for the next president of the regional bank.

Jennifer Schonberger covers the Federal Reserve, Congress, the White House, the Treasury, the SEC, the economy, cryptocurrencies, and the intersection of Washington policy with finance. Follow her on X @Jenniferisms and on Instagram.

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