Just three months after Atlanta Fed president Dennis Lockhart announced he would step down as president effective February 28, moments ago another (non-voting) FOMC member, the uber-hawkish president of the Richmond Fed, Jeffrey Lacker, 61, also decided to call it quits as well, and on Tuesday said he will retire as president and chief executive officer of the Federal Reserve Bank of Richmond on Oct. 1, after 28 years at the Richmond Bank.
"It's been an honor to serve the Federal Reserve," Lacker said. "I feel fortunate to have spent time throughout the Fifth District learning first-hand about people's economic experiences, and to have participated in some of the most extraordinary policy deliberations in our nation's history. It's been my deepest privilege to lead the Richmond Fed and the dedicated people who work here."
Lacker joined the Richmond Fed in 1989, where he served in various positions prior to his appointment as president in August 2004. Previously, Lacker was an assistant professor of economics at Purdue University, and also previously worked at Wharton in Philadelphia.
Continuing his hawkish ways, Lacker, who is not a policy voter in 2017, on Friday said that recent data supports further Fed rate hikes, when he said that improvement in inflation compensation measures, strong employment growth, and possible fiscal stimulus support case for higher rates.
“Improvement in measures of inflation compensation were underway well before the election,” he says in prepared remarks at a speech in Baltmore last Friday, adding that the “Fed’s interest rate target is exceptionally low. Upward adjustment is needed” He also cautioned that “monetary policy rates are likely to increase, and my view is that they may need to increase more briskly than markets appear to expect, depending on developments as the year unfolds."
On ther other hand, in a Fed in which at least half the members now take their dot plot cues from the Trump policies, which are yet to be finalized, it appears that increasingly more regional Fed president are willing to step into the spot of biggest Fed hawks, if only until the next downturn in risk assets.
* * *
Full Richmond Fed Statement below.
Richmond Fed President Jeffrey Lacker Announces Retirement
Jeffrey M. Lacker, president and chief executive officer of the Federal Reserve Bank of Richmond, announced today that he will retire on October 1, 2017, after 28 years of public service at the Richmond Bank. Dr. Lacker joined the Richmond Fed in 1989 and served in various leadership positions prior to this appointment in August 2004.
Before joining the Federal Reserve, Lacker was an assistant professor of economics at the Krannert School of Management at Purdue University and previously worked at Wharton Econometrics in Philadelphia. He earned his doctorate in economics from the University of Wisconsin and received a bachelor's degree in economics from Franklin & Marshall College.
"It's been an honor to serve the Federal Reserve," Lacker said. "I feel fortunate to have spent time throughout the Fifth District learning first-hand about people's economic experiences, and to have participated in some of the most extraordinary policy deliberations in our nation's history. It's been my deepest privilege to lead the Richmond Fed and the dedicated people who work here."
Margaret Lewis, chair of the Richmond Fed's Board of Directors and former president of HCA's Capital Division, said, "Jeff has been an outstanding leader for the Richmond Fed and has made many contributions to the Federal Reserve System. He led the Federal Reserve's centennial commemoration and understands how the lessons of the past inform the future. He readily and easily delivers Fed history lessons while providing a better understanding of the Fed's roles and responsibilities. His views on monetary policy are well known. And, throughout his career, Jeff has maintained a strong focus on the Fed's role in the payments system. It's the context of his passion and his sincere curiosity that have made him an effective ambassador for greater understanding of America's central bank."
The Board of Directors formed a search committee that will be led by Lewis. The search firm of Heidrick & Struggles has been engaged to assist the committee in conducting a nationwide search to identify a broad, diverse and highly qualified candidate pool for this leadership role. Individuals from both inside and outside the Federal Reserve System can apply. The public can make submissions directly to the search firm through the Bank's public website.