Bostic is about to step down, and the Atlanta Federal Reserve is starting a succession selection process

The Zhitong Finance App learned that the US Federal Reserve of Atlanta announced on Monday that it has officially begun the selection process for a new governor. Earlier, Bostic, the bank's current governor, had confirmed that he would retire after his term expires at the end of February this year.

According to the Federal Reserve Act, regional Fed governors are selected by directors who are not affiliated with regulated financial institutions, and the final candidate still needs to be approved by the US Federal Reserve Board of Governors in Washington. The Atlanta Federal Reserve said in a statement that the selection committee will be led by Gregory Haile, chairman of the bank's board of directors and CEO of the non-profit organization Upwardly Global, and will seek extensive public comments throughout the process.

Bostic announced last month that he will step down after his current term ends on February 28. If a new governor has not been decided at that time, Cheryl Venable, the Atlanta Federal Reserve's first vice president and chief operating officer, will temporarily assume the position of governor.

Bostic took charge of the Atlanta Federal Reserve in 2017, becoming the first African American to lead a regional Federal Reserve. During his tenure, he was relatively moderate in monetary policy discussions, and his views had some influence within the Federal Reserve.

However, in recent years, Bostic has also been questioned by the outside world due to financial transaction issues. A report released by the Federal Reserve's internal oversight agency last year confirmed that its asset managers carried out relevant operations during the period when policymakers prohibited transactions, but found no evidence that Bostic used undisclosed information to conduct transactions.

Just last week, the Board of Governors of the Federal Reserve voted unanimously to re-appoint the remaining 11 regional Federal Reserve governors for a term of five years. This decision temporarily removed market uncertainty about the future personnel composition of the Federal Reserve's Monetary Policy Committee (FOMC).

According to the rotation schedule, the next time the Atlanta Federal Reserve Governor has the right to vote on interest rates in the Federal Open Market Committee is 2027. As Bostic steps down, the policy stance and background of its successor will also continue to be the focus of attention of the market and investors.