Fed's Bostic to Retire at End of Term in February

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00:00Breaking news this time on the Fed. Atlanta Fed President Raphael Bostic is planning to retire

00:05from the U.S. Central Bank when his term ends on February 28th. Let's go now to Bloomberg's

00:11international economics and policy and policy correspondent Michael McKee. So, Mike, what do

00:17we know about, you know, what this does in terms of leaving openings for President Trump to put in

00:24place? It really doesn't affect President Trump at all because the Atlanta Fed Board of Directors

00:30made up of business leaders and bankers in the Atlanta region will choose the next president.

00:36They're setting up a search committee. So the president doesn't get a chance to nominate somebody

00:42new. But it does leave an opening and it does raise a question about whether that person will be more

00:48hawkish or dumbish. Bostic, who's 59, has been on the Fed since 2017. And he's been a more hawkish voice

00:56recently. He was holding out for just one rate cut this year. And he thinks that with inflation where

01:03it is, the Fed should not be cutting too much at this point. So the fact that he's leaving will affect

01:10probably the way the committee looks at things next year. Now, Bostic was the first gay and first

01:18African-American member of the Federal Reserve Open Market Committee. So he has those distinctions.

01:26He also has the unfortunate distinction of being one of the Fed bank presidents caught up

01:30in a trading scandal when in 2017 to 2023, I think he was his financial advisors did some trading during

01:41Fed blackout periods, which violates Fed rules. The Fed's inspector general cleared Bostic of doing

01:47anything illegal. But it was not a good look. And I bring that up, ma'am, because to get back to what

01:54you were first asking about, the Fed itself, the Fed Board of Governors votes on whether or not to

02:03renew the contracts of all of the Fed bank presidents every five years. And that deadline is coming up

02:10February 28th. So we don't know if this is related to that or not. But the timing is exactly the same.