Atlanta Fed restarts president search with Warsh in place
Bloomberg reported the delayed process gives the new Fed chair input on a regional leader who will vote on rates in 2027.
By Sofia Marchetti · World Affairs Correspondent
3 min read
The Federal Reserve Bank of Atlanta has restarted its search for a president after Kevin Warsh took over as Fed chair, Bloomberg reported Friday. The timing matters because the next Atlanta Fed chief is scheduled to vote on interest rates in 2027, when investors expect the central bank to be raising rates to fight high inflation, according to Bloomberg.
Raphael Bostic left the Atlanta Fed presidency at the end of February, Bloomberg reported. The search for his successor was already moving in the spring but was paused after officials concluded it could not be finished before Warsh was sworn in in late May, Bloomberg reported, citing people familiar with the matter.
The pause gives Warsh a role in choosing a regional Fed leader at a moment when President Donald Trump and his advisers are looking for ways to alter the central bank’s makeup, Bloomberg reported. Bloomberg said Treasury Secretary Scott Bessent and White House Economic Council Director Kevin Hassett are among Trump economic officials watching the Atlanta process closely, citing people familiar with the matter.
Bloomberg reported that the delay has prompted questions among people inside and close to the Fed about how far Trump administration officials may try to affect the selection. The White House and Treasury Department did not respond to Bloomberg’s requests for comment, and the Fed declined to comment, Bloomberg reported.
The Atlanta search has considered a broad field, Bloomberg reported. Candidates interviewed included Rebecca Patterson, a senior fellow at the Council on Foreign Relations; Marc Sumerlin, an economist who advised the George W. Bush administration; and Michael Faulkender, a former deputy Treasury secretary under Bessent, Bloomberg reported, citing people familiar with the search. Bloomberg said those candidates either declined to comment or did not respond to requests for comment.
Greg Haile, chair of the Atlanta Fed’s board of directors and the official leading the search, said in a statement reported by Bloomberg that the committee is carrying out a thorough process and remains focused on choosing the best candidate for the Sixth District while protecting the process. Haile also said the group would give updates when appropriate, according to Bloomberg.
The dispute over Fed personnel has extended beyond Atlanta, Bloomberg reported. Trump attempted in August to remove Fed Governor Lisa Cook over unproven mortgage-fraud allegations, making him the first U.S. president to try to fire a sitting Fed governor, according to Bloomberg. Cook sued to keep her post, and Bloomberg reported that the Supreme Court is expected to rule in the coming days.
Trump administration officials hope the court either allows Cook’s removal or sets out a path for later efforts to dismiss Fed governors, Bloomberg reported, citing people familiar with the matter. Bloomberg also reported that the White House is seeking another vacancy on the Fed Board of Governors that would give Trump appointees a majority; the three current Trump-appointed governors have said the Fed should preserve its independence on monetary policy, according to Bloomberg.
Regional Fed presidents are chosen differently from governors, Bloomberg noted. Fed governors are nominated by the president and confirmed by the Senate, while regional presidents are selected by local boards, excluding directors from financial institutions, and then approved by the Fed board, according to Bloomberg.
Fed chairs and governors commonly give views on regional bank president candidates, and finalists are usually interviewed by Fed board members before appointment, Bloomberg reported. All 12 regional presidents take part in rate-setting meetings, but only five vote in any given year, according to Bloomberg.
This story draws on original reporting from Fortune.