Hawkish Fed President Bostic To Retire In February Amid Push For More Rate Cuts

Atlanta Federal Reserve President Raphael Bostic has announced that he will be leaving office to retire at the end of his term in February 2026. The announcement came at a time when the US Fed had begun pushing for more rate cuts to increase economic growth in the United States. 

Raphael Bostic Prepares To Retire After 8 Years In Office

As reported by CNBC News, Raphael Bostic has announced plans to retire after his tenure, which is expected to run until February 28, 2026, expires. The regional Fed president assumed office in 2017 as the first openly gay and black president. Regional presidents serve a five-year term that runs concurrently and generally expire in years ending with 1 or 6.

Furthermore, while local board members vote on the president, the final approval comes from the Federal Board of Governors. Meanwhile, much of his tenure has been marked by controversies, particularly in 2022, when rumors surfaced that he traded on insider information during blackout periods near policy meetings. However, no evidence was found to back the suspicions. 

Bostic is also viewed as a centrist, advocating for gradual and steady change rather than radical reform. Furthermore, unlike other Fed members, Bostic is highly cautious about the recent push for increased rate cuts, despite a softening labor market and elevated inflation in the United States.

However, regardless of how he is perceived, Bostic is proud of what he has achieved in his tenure as regional president, bringing the goal of an economy that works one step closer to US citizens. Further, Fed chair Jerome Powell praised Bostic, stating that his views have enriched the Federal Open Market Committee’s understanding of the country’s dynamic economy. Meanwhile, until the board holds an election, Cheryl Venable, who serves as First Vice President and COO, will assume the role of president.

Fed Reforms And Impending Rate Cut

Meanwhile, Bostic’s announcement to retire comes ahead of a landmark year for the Fed and its rate-cutting arm, the Federal Open Market Committee, as elections to reappoint new regional presidents loom. Furthermore, Fed Chair Jerome Powell’s tenure also expires by May 2026, though he will continue to serve as governor until 2028.

Meanwhile, Fed governor Stephen Miran continues to advocate for a 50 basis point rate cut by December; however, the FOMC continues to opt for a quarter basis point cut, as it had done in September and October. Nevertheless, Miran remains optimistic that another rate cut will occur by December.