Search for new Boston Fed to be ‘open’ amid calls for diversity

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Sep 28 (Businesshala) – The search for a new head of the Boston Federal Reserve Bank will be “broad, rigorous and open”, details of which will be announced soon, a spokesman for the bank said on Tuesday.

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Boston Fed Chairman Eric Rosengren and Dallas Fed Chairman Robert Kaplan abruptly announced their imminent retirements on Monday amid questions about the ethics of their securities trading last year as the Fed took extraordinary action to support markets and the economy. .

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The trading turmoil and subsequent departures bring an unaccounted spotlight to regional outposts of the US central bank, whose heads are not chosen by the White House but by the local board of directors with input and approval by the Fed’s board of governors.

Although Fed Chairman Jerome Powell maintains that diversity is a top priority for the institution, Fed Bank President Discoveries has criticized his limited success in that regard.

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Seven of the 12 Fed Bank chairmen – including two outgoing Fed Bank chiefs – are white people.

In recent years the Fed has made a concerted effort to delegate a more diverse set of directors to lead Fed bank boards for more diverse Fed leadership.

Now the question is whether this strategy will pay off.

“We need Fed leadership that has the public’s economic interests at heart and is as diverse as the country they represent,” Benjamin Dulchin, director of the Fed Up campaign, said after Monday’s resignation.

Fed banks typically employ the services of a search firm to assist in hiring a new head. Neither Boston nor Dallas have done so yet.

A Dallas Fed spokesperson did not immediately provide any details on the upcoming discovery.

Reporting by Ann Safir Editing by Chizu Nomiyama

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