Federal Reserve Chair Jerome Powell offered high praise for Raphael W. Bostic, the president of the Atlanta Fed, who announced he will retire in February. Powell lauded Bostic’s “steady voice” and “perspective,” saying his leadership “strengthened our institution and advanced the Federal Reserve’s mission.”
Bostic’s decision to step down, at age 59, means he leaves his post six years before his term was set to expire. His retirement creates another vacancy on the Federal Open Market Committee (FOMC), the 12-member group responsible for setting US interest rates. This is the second significant departure recently, following Adriana Kugler’s resignation from the board of governors in August.
The background for Bostic’s retirement is a period of unusual and intense political pressure on the central bank. President Donald Trump has repeatedly attacked the Fed’s independence, demanding policy changes and targeting specific officials in his quest for lower interest rates. After Kugler’s departure, Trump installed one of his advisers, Stephen Miran, as an interim governor.
The process for replacing Bostic, however, will not involve the president. The Atlanta Fed will conduct its own nationwide search for its next leader. This system is a key component of the Fed’s “federal” structure, designed to balance power between Washington D.C. and the rest of the country.
Bostic, the first African American and openly gay regional Fed president, reflected on his work, stating his pride in advancing the goal of “an economy that works for everyone.” Powell’s tribute emphasized this, noting Bostic’s public service was “grounded in analysis, informed by experience and guided by purpose.”