Atlanta Fed President Bostic says he’ll depart workplace when his time period expires in February

Raphael Bostic, president of the Atlanta Federal Reserve, said Wednesday that he will leave office when his term expires in February.

Bostic has been in his current role since June 2017 and is the first black and openly gay regional president. His term, which has also been marked by questions surrounding his personal investments, runs until February 28.

“I am proud of what we have accomplished during my tenure to make the lofty goal of an economy that works for everyone a reality, and I look forward to exploring new ways to advance this bold vision in my next chapter,” Bostic said in a statement.

The announcement comes ahead of a crucial year for the Fed and its interest rate body, the Federal Open Market Committee.

Regional presidents serve five-year terms, generally synchronous, ending in years ending in either 1 or 6, which will be the next year. While local boards vote on presidents, they are subject to approval by the Fed’s Board of Governors. Normally a routine process, unusual political dynamics on the board could add a new twist to the proceedings.

In addition to the regional president reappointments, Jerome Powell’s term as Fed chair expires in May, but his term as governor runs through 2028.

During his time in office, Bostic was seen as more of a centrist, although he has been more cautious about cutting interest rates this year at a time of elevated inflation and a weakening labor market. He is not a FOMC voter this year. Next up is Atlanta in 2027.

Powell said Bostic’s “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 – based on analysis, informed by experience and guided by purpose.”

Until the board names a successor, Cheryl Venable, the Atlanta Fed’s first vice president and chief operating officer, will assume the role of president.

Bostic’s tenure was not without controversy.

In October 2022, the Fed announced that it was investigating trades that Bostic made during lockdown periods near monetary policy meetings. According to an internal report, 154 deals were made in his name during that period. However, the report also noted that there was no evidence that Bostic used inside information or had personal conflicts.

Other issues related to financial disclosure conditions and inappropriate levels of Treasury holdings were also raised.

For his part, Bostic expressed regret over the discrepancies, saying the trades were executed by third-party managers over whom he had no control.

The controversy was part of a larger problem with investments by Fed officials, which led to tighter internal controls and rules over what types of securities they can hold.