The St. Louis Federal Reserve announced on Thursday that Jim Bullard will be resigning as the president of the bank, effective August 14. Bullard will be assuming the role of dean at Purdue University’s Mitchell E. Daniels, Jr. School of Business, starting from August 15. In light of his new position, Bullard has decided to recuse himself from any monetary policy responsibilities on the Federal Reserve’s Federal Open Market Committee, as well as other related duties. Furthermore, he has ceased all public speaking engagements. In his statement, Bullard expressed his gratitude for being a part of the St. Louis Fed for the past 33 years, including his tenure as president for the last 15 years. He also acknowledged the privilege of working alongside dedicated and inspiring colleagues within the Federal Reserve System.
Search for Bullard’s Successor
The St. Louis Fed has announced that they will be enlisting the assistance of a national executive search firm to help find a suitable replacement for Bullard. This decision comes just before the Fed’s upcoming policy meeting, which is scheduled to take place in two weeks. According to the CME Group’s FedWatch tool, traders are currently estimating a 92.4% probability of a 25 basis point rate hike.
Bullard’s Views on Interest Rates
In May, Bullard expressed his belief that interest rates should be raised by an additional half-point in order to combat inflation. Since then, the Fed has already increased rates by 25 basis points. Bullard emphasized the importance of addressing inflation promptly, as there is a risk that it may persist at high levels. He emphasized that taking action now, while the labor market is strong, would prevent a scenario reminiscent of the 1970s.
Bullard’s Non-Voting Status
It is worth noting that Bullard is not currently a voting member on the policymaking committee for this year. However, his insights and perspectives as the president of the St. Louis Fed have still been influential within the Federal Reserve System.