The Federal Reserve Bank of Cleveland has announced that it is in the process of searching for a replacement for its current president, Loretta Mester, who is retiring due to reaching the mandatory retirement age. Mester, who became the 11th president and CEO of the Cleveland Fed in June 2014, will step down on June 30, 2024, in accordance with the Fed’s age and length of service policies.
A committee comprised of the Cleveland Fed’s board members will be responsible for conducting the search for Mester’s successor. Mester, known for her hawkish stance on monetary policy, was expected to be a voting member on the Federal Open Market Committee (FOMC) in the coming year. The FOMC is set to meet again in January, with 82.9% of traders, according to the CME FedWatch Tool, predicting that the committee will maintain interest rates at their current level during the meeting.
In a recent speech on October 20, Mester emphasized that her views on monetary policy will continue to be influenced by incoming economic data. She highlighted that whether there is a need to raise the fed funds rate beyond its current level, and the duration of restrictive policy measures, will depend on the evolving state of the economy as well as changing risks.
Let’s stay informed about any updates regarding the search for the new president of the Federal Reserve Bank of Cleveland.