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Cleveland Fed President Pianalto to Retire in 2014

Thursday, 08 August 2013 03:34 PM

Federal Reserve Bank of Cleveland President Sandra Pianalto will retire in early 2014, the Cleveland Fed said on Thursday, signaling more change in the leadership of the U.S. central bank.

Pianalto has been president of the Cleveland Fed, one of 12 regional banks in the U.S. Federal Reserve system, since 2003.

She is the latest senior Fed official to announce plans to step down, adding yet more uncertainty to the future of U.S. monetary policy as policy makers debate how much longer to keep the central bank's extraordinary stimulus measures in place.

Editor’s Note: Put the World’s Top Financial Minds to Work for You

Fed Chairman Ben Bernanke's second term at the central bank's helm expires on January 31, 2014, and he is widely expected not to seek a third term.

In addition, Fed Governor Elizabeth Duke is departing from the Fed Board at the end of this month, and Governor Sara Bloom Raskin was nominated to the U.S. Treasury by President Barack Obama. Her appointment must be confirmed by the U.S. Senate.

Pianalto joined the Cleveland Fed in 1983 and was tapped to be its president 20 years later. She is a member of the Federal Open Market Committee, the panel that sets U.S. monetary policy, but she is not a voting member this year.

Pianalto never dissented during her time on the policy-setting committee, where the Cleveland branch will rotate into a voting spot next year.

"She's been a centrist and a team player; nobody would accuse her of being a showboater," said JP Morgan economist Michael Feroli.

"Her public comments have never really made life difficult for Fed leadership, nor have they confused or misdirected the markets. Generally what she says has been a pretty reliable weathervane for where the committee is heading."

The Cleveland Fed's chairman, Richard Smucker, who is also chief executive officer of the J.M. Smucker Co., said the board has formed a search committee to seek a successor, with a decision due in early 2014.

Although Pianalto was a Cleveland Fed insider, the bank has a long tradition of going to outsiders for its presidents.

Prior to her appointment in 1983, the Cleveland Fed was led by Jerry Jordan, who was appointed in 1992. Jordan joined Cleveland from the St. Louis Fed, taking over from Lee Hoskins, who had been president since 1987.

Hoskins, a private sector economist, replaced Karen Horn, who became the first woman president of a regional Fed bank when she was hired in 1982. Both Hoskins and Horn worked as Fed economists before moving to the private sector.

Editor’s Note: Put the World’s Top Financial Minds to Work for You

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Federal Reserve Bank of Cleveland President Sandra Pianalto will resign as head of the U.S. regional central bank in early 2014, the bank said on Thursday.
Thursday, 08 August 2013 03:34 PM
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