The search for a successor to the retired president of the Federal Reserve Bank of Atlanta was restarted when Kevin Warsh took office as the chairman of the U.S. central bank, according to two people with direct knowledge of the matter. It is not clear how the reset has altered the list of potential candidates or the selection timetable.
People familiar with the search process said it had been moving toward a conclusion in the spring. Those same sources said the decision was taken to postpone a final hiring decision until the new chairman was sworn in so he could review any finalist proposed by the Atlanta Fed's local board.
Regional Fed presidents are selected by their respective local boards of directors but require confirmation by the Board of Governors in Washington. The Atlanta Fed declined to make an independent comment but provided a statement from Gregory Haile, chair of the Atlanta Fed board.
"Our committee is conducting a thorough and deliberate search for the next president of the Federal Reserve Bank of Atlanta. We maintain our focus on selecting the best candidate to serve the Sixth District, while protecting the integrity of the process," Haile said. "We will provide relevant updates about this important leadership role when appropriate."
The Board of Governors in Washington did not provide a comment on the matter.
The vacancy at the Atlanta Fed follows the retirement of former Atlanta Fed President Raphael Bostic, who stepped down on February 28. The choice of his successor has attracted heightened attention because of recent efforts by the White House to exert influence over the central bank and its policy direction. Those efforts have included an attempted removal of a Fed governor and pressure linked to a criminal inquiry concerning a former Fed chair, a probe that has since been dropped. The former chair in question remains a member of the Fed board.
Presidents of the Fed's 12 regional banks participate in monetary policy deliberations on a rotating basis and oversee large teams that perform research on a wide range of economic topics while handling operational responsibilities. Because regional presidents are hired by local boards rather than nominated by the president of the United States and confirmed by the Senate, they are viewed as an important safeguard for the Fed's institutional independence and as a critical source of regional economic intelligence for policy deliberations.
Observers note that a concerted effort by the White House or the Treasury Department to shape appointments to regional presidencies would change a system that has typically operated outside the center of partisan political battles and that is structurally intended to serve as a check on centralized authority.
Separately, the Treasury secretary raised questions last year about the appointment process for regional presidents, proposing that such positions be subject to a residency requirement. The substance and potential consequences of that suggestion remain part of broader conversations about governance and oversight of the regional Federal Reserve banks.
The Atlanta Fed board has emphasized procedural integrity as it continues the search. With the top candidate list having been held pending review by the new chairman, investors, market participants and regional stakeholders will be watching for any announcements about timing and the identity of finalists.
Until the local board and the Board of Governors provide further updates, the full implications of the reset on both the timeline and the pool of candidates will remain uncertain.