Boston Fed’s Rosengren, citing worsening of kidney condition, to retire Sept. 30 By Reuters
By Jonnelle Marte and Howard Schneider
WASHINGTON (Reuters) -Boston Federal Reserve President Eric Rosengren announced on Monday that he will retire on Thursday, Sept. 30, citing a long-term health condition.
Rosengren said that he was eligible for the 2020 kidney transplant list and would like to “lifestyle modifications” in order to preserve his health. He will be retiring earlier than the June retirement deadline of 65.
Robert Kaplan from Dallas Fed Bank was also under scrutiny by the public for trading in stocks last year which had raised doubts about Fed ethics rules.
Although the Boston Fed didn’t mention the controversy, it focused more on Rosengren’s disclosure to his staff about being placed on the transplant waiting list in June 2020 due to “the worsening and long-standing kidney disease he suffered.” If he changes his lifestyle now, it might help delay dialysis.
Rosengren wrote Monday that it was clear to him that he should try to lower my stress levels so that he can concentrate on his health. “It is equally important for the Federal Reserve Bank of Boston and the Federal Reserve System to focus on what is important – to return the economy to full employment and carry out the important work conducted by the Boston Fed.”
Powell said that Rosengren was a “relentless focused” on safety and the financial system and had “distinguished him time and again.”
His focus on financial stability and especially on potential risks in commercial real estate markets was what drew his attention to 2020 investments in real estate investment trusts.
Rosengren and Kaplan made multi-million dollar trades in stocks individually in 2020. Despite criticisms of the Fed’s ethics rules, including Powell’s, Rosengren agreed to make those investments available by Sept. 30, amid concerns about their sale. Fed chair, Janet Yellen, has initiated a comprehensive review of Fed rules. She agreed that reform is needed.
Rosengren will be retiring on September 30th.
During the search to replace Rosengren, Boston Fed’s First Vice President Kenneth C. Montgomery will assume responsibility as interim president.
SEARCH FOR SUCCESSOR ‘WELL UNDERWAY’
Given Rosengren’s mandatory retirement next year that search is already “well underway” with a search committee including six of the Boston Fed’s board members, none of whom are bankers, the statement said.
Rosengren is a PhD economist and the Boston Fed’s president since 2007. He has also been a member of its staff since 1985. He was previously the head of the bank’s supervision and regulatory division before he took office as president.
Rosengren was one of 12 Fed regional bank presidents. He also held a rotating position on the bank’s policy-setting board.
Rosengren was responsible for overseeing part of central bank’s emergency response in order to stabilize financial markets following the Great Recession as well as the pandemic coronavirus. These included financial facilities that were used to protect money-market assets during downturns as well as a Main Street lending program for loans to those small and medium-sized enterprises affected by the pandemic.
Rosengren frequently spoke out about the potential dangers in financial markets. He called for more reforms of money-market fund management and encouraged regulators to examine stablecoins. This is a cryptocurrency that can be pegged to a traditional currency such as the US dollar.
His participation in Fed events on factors contributing to racialeconomic disparities was also a highlight.
In a release by the Boston Fed, Corey Thomas (deputy chair) said that he will be missed. “Eric worked tirelessly during the pandemic downturn to support the nation’s economic recovery, never revealing or complaining about a worsening health condition.”