Raphael Bostic, president and CEO of the Federal Reserve Bank of Atlanta, announced Wednesday he intends to retire from his position when his term ends in February.
Bostic, 59, has served in the role since 2017 and is the first Black and openly gay chief executive of a regional Fed bank. An academic and former Fed economist, Bostic directed attention to economic immobility and inequality and pushed business, civic and government leaders to acknowledge diversity not simply as a moral issue but as an economic imperative.
“In my role,” he told The Atlanta Journal-Constitution in 2021, “my focus is on economics, the health of the U.S. economy and getting us to a place where we can experience the full potential of everyone.
“It’s my view that, when we have more fulsome participation of everyone in the U.S. economy, the economy is actually going to grow faster,” he said.
Bostic is also a nonvoting member of the Federal Open Market Committee, the powerful group of Fed governors that sets short-term interest rates, which influences borrowing costs for many financial products.
The Atlanta Fed, located in Midtown, is one of 12 regional banks in the Federal Reserve System. It’s territory includes Alabama, Florida and Georgia, and portions of Louisiana, Mississippi and Tennessee.
All Reserve Bank presidents serve five-year terms that expire in years ending in 1 or 6. They are subject to a mandatory retirement age of 65, but Bostic is leaving years before reaching that age.
“I’m proud of what we accomplished during my tenure to turn the lofty goal of an economy that works for everyone into more of a reality, and I look forward to discovering new ways to advance that bold vision in my next chapter,” Bostic said in a statement Wednesday announcing his decision.
In his time leading the Atlanta Fed, Bostic has been a part of many cultural and business organizations in the city, including a stint as chairman of the Metro Atlanta Chamber board. In a statement, the chamber’s President and CEO Katie Kirkpatrick said Bostic “has been an instrumental partner to the Metro Atlanta Chamber, bringing steady leadership and thoughtful insight that strengthened our region and expanded opportunity. We deeply appreciate his collaboration and the lasting impact of his service.”
Credit: NATRICE MILLER
Credit: NATRICE MILLER
The Fed has two mandates from Congress: promoting maximum employment and promoting price stability.
“I believe that risks to both of the mandated objectives make this the most challenging environment since I became a central banker in 2017,” Bostic said Wednesday afternoon during a speech to the Atlanta Economics Club, adding he believes the Fed should keep interest rates steady to combat inflation. He did not address his decision to retire.
Bostic also served as an assistant secretary at the Department of Housing and Urban Development from 2009 to 2012 during the Obama administration. Bostic began his career in 1995 as an economist at the Federal Reserve Board of Governors, later moving into academia as a professor at the University of Southern California.
During his time leading the Atlanta Fed, Bostic brought more attention to economic equity and the plight of the poor, but he was also embroiled in controversy over his investment trades.
Between 2018 and 2023, 154 trades were executed on behalf of Bostic that violated Fed rules, according to the findings of an investigation released last year by the Office of the Inspector General. However, investigators did not find any evidence that the trades were based on confidential Fed committee information and that Bostic did not have financial conflicts of interest.
“We independently verified that Dr. Bostic relied on third-party managed accounts and that neither he nor his personal investment advisors had the ability to direct specific trades. Dr. Bostic was nonetheless responsible for ensuring that all trades and investments made on his behalf complied with all applicable rules, including the provisions addressing appearance standards,” according to the report.
The investigation started after Bostic disclosed in 2022 his accidental trading that violated the Fed’s rules.
“Due to my reliance on a third-party manager, I was unaware of any specific trades or their timing, including a limited number that took place during Federal Open Market Committee (FOMC) blackout periods or financial stress periods,” he wrote in a disclosure statement at the time.
Bostic’s departure comes as President Donald Trump has worked to exert more control over the independent central bank. This summer, Trump fired Federal Reserve Governor Lisa Cook, the first time a president has tried to oust a sitting governor. Cook, a Georgia-born economist and Spelman College alumna, sued, and the Supreme Court has allowed her to stay in her role while her lawsuit is pending.
Neither Trump nor the U.S. Senate will choose Bostic’s replacement. The presidents of the Fed’s regional banks are chosen by their local boards but are subject to the approval of the Fed’s Board of Governors.
Bostic’s term is set to end Feb. 28. The Atlanta Fed’s board of directors will conduct a search for a new president and CEO.
If one is not in place by the end of February, then the bank’s first vice president and chief operating officer, Cheryl Venable, will become the interim president until a permanent replacement is found.
“It has been a privilege to serve alongside President Bostic,” Federal Reserve Board Chair Jerome H. Powell said in a statement. “His perspective has enriched the Federal Open Market Committee’s understanding of our dynamic economy. And his steady voice has exemplified the best of public service — grounded in analysis, informed by experience, and guided by purpose. His leadership has strengthened our institution and advanced the Federal Reserve’s mission.”
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