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


© Reuters. FILE PHOTO – The Federal Reserve Board Building is seen in Washington, U.S.A, on March 19, 2019. REUTERS/Leah Millis/File Photo

(Reuters) – The search for a new chief of the Boston Federal Reserve Bank will be “comprehensive, rigorous and open,” with details to be announced soon, a spokesman for the bank said on Tuesday.

Following questions over the ethics of the Fed’s securities trading, Robert Kaplan and Eric Rosengren from Boston Fed announced their impending retirements on Monday.

Following the chaos in the trading market, the departures put a spotlight on U.S. central banking’s regional outposts. They are selected not by the White House but instead by their local boards of directors with input and approval from Fed’s Board of Governors.

While Fed Chair Jerome Powell insists that diversity is an institution’s top priority, Fed bank head searches have come under fire for being unsuccessful in this area.

Seven of the twelve Fed bank presidents, including two former Fed chiefs are white men.

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Fed directors have been hand-picked to be part of the Fed’s diverse leadership team in recent years.

It is now questionable whether the strategy paid off.

Following Monday’s resignations Benjamin Dulchin from Fed Up Campaign stated that we need Fed leadership who is focused on the economy and as diverse as our country.

To help them hire a new head, Fed banks often engage the assistance of search firms. Boston and Dallas have not yet made this move.

The Dallas Fed spokesperson did not provide any details about the planned search.

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