Economist Austan Goolsbee named next Chicago Fed president

Economist Austan Goolsbee will take over as president of the Chicago Federal Reserve early next year as the central bank oversees a complex set of policies moving forward, according to an announcement Thursday.

Goolsbee will officially assume the seat on January 9, 2023, completing the term of the retired Charles Evans, which will expire on Feb. 28, 2026.

Currently a professor at the Booth School of Business in Chicago, Goolsbee previously served as chairman of the White House’s Council of Economic Advisors from 2010-11 under President Barack Obama. He is also a

“Austan is an exceptional choice to be the next president of the Federal Reserve Bank of Chicago. He is a professional economist with extensive policy experience and a strong commitment to public service,” Helene Gayle, chair of the Chicago Fed office, said in a statement. .

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Goolsbee comes to the Chicago Fed at a difficult time for the central bank.

As part of efforts to combat the worst inflation in more than 40 years, the Fed has raised its interest rate half a dozen times this year and is expected to continue increasing until early 2023. Some economists worry that the Fed is tightening too much and could lead to a recession. financially.

In a recent interview with CNBC, Mr. Goolsbee indicated that the slowdown shown in some inflation measures recently may not be enough to get the Fed to step back from tightening its policy.

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“If you are raising 75 points in the meeting, we will need to know what the timing is,” he said following the October consumer price report which showed that inflation rose slightly more than expected in the month. “Unless and until you get a monthly rate reduction in a good place, I think the saying ‘cut it, keep it quiet’ will not be silent.”

Goolsbee will not be a voting member of the Federal Open Market Committee in 2023. However, he will be able to voice his opinion on policy and will be a voting member in 2025.

The release of the Fed in Chicago announcing the appointment of a new regional president is a “financial expert” whose research covers many topics. The release also notes that Goolsbee has been advocating for alternatives to inflation.

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Goolsbee called the Chicago Fed “one of the crown jewels” of central banking.

“I am humbled and happy to serve the people in this position,” he said in a statement. “These have been difficult, unprecedented times for the economy. The bank has played an important role in helping the District get through it and succeed moving forward.”

The Fed has seen significant changes recently with governors and regional presidents moving in and out as voting members.

New members include state leaders Lorie Logan of Dallas and Susan Collins of Boston, as well as governors Philip Jefferson and Lisa Cook.

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