In a recent development, the St. Louis Federal Reserve has named Alberto Musalem as its new president, following the unexpected resignation of James Bullard.
What Happened: The regional bank announced on Thursday that Musalem, 55, an economist and former New York Federal Reserve staff, will replace Bullard, who stepped down in July, Reuters reported. Musalem will commence his new role on April 2, succeeding interim leader Kathleen O’Neill, the St. Louis Fed’s first vice president.
Musalem has an extensive background in market, public policy, and central bank experience. He previously held positions such as co-chief investment officer at Evince Asset Management, executive vice president at the New York Fed, and economist at the International Monetary Fund.
He currently serves as an adjunct professor at Georgetown University and sits on the boards of the Federal Home Loan Mortgage Corporation and Man Group.
Why It Matters: Musalem takes on the role at a critical time, with the Federal Reserve likely having concluded its rate-hiking campaign and discussions ongoing about the future of the central bank’s benchmark overnight interest rate. He is expected to cast his first vote on the Federal Open Market Committee next year.
The selection of Musalem sheds light on the process of choosing regional Fed leaders, a subject of controversy. Unlike the head of the U.S. central bank and Fed governors, regional Fed leaders are not publicly vetted, despite calls for increased diversity among the top leadership ranks.
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