In a significant development that marks the end of an era at the Federal Reserve Bank of St. Louis, President James Bullard has announced his decision to step down from his role. Bullard, who has been at the helm of the St. Louis Fed since 2008, will transition to academia as the inaugural dean of Purdue University's Mitchell E. Daniels, Jr. School of Business.
Bullard's departure, effective August 14, comes at a critical juncture as the Federal Reserve navigates the complexities of high inflation and the economic repercussions of the COVID-19 pandemic. Known for his hawkish stance, Bullard has been a leading advocate for aggressive interest rate hikes to curb inflation. His departure will be felt as the Fed moves toward the end of its tightening cycle, with a rate hike expected later this month.
The St. Louis Fed has announced that Bullard will continue in an advisory role until his departure. However, he will not participate in policy deliberations or the rate-setting decision at the Federal Open Market Committee's meeting on July 25-26.
Reflecting on his tenure at the St. Louis Fed, Bullard said, "It has been both a privilege and an honor to be part of the St. Louis Fed for the last 33 years, including serving as its president for the last 15 years." He expressed his gratitude for the opportunity to work alongside dedicated colleagues across the Federal Reserve System.
Bullard's leadership at the St. Louis Fed has been marked by his scholarly expertise and often prescient views. His tenure has seen the Fed navigate several remarkable economic issues, including the Great Recession, the zero lower bound, high unemployment, the COVID pandemic, and the current high inflation.
The St. Louis Fed's board of directors will form a search committee to find Bullard's successor. The committee will conduct a robust, transparent, fair, and inclusive search, reflecting the Fed's commitment to diversity and inclusivity. Kathleen O'Neill Paese, the regional bank's first vice president and chief operating officer, will serve as interim president.
Bullard's move to Purdue University marks a new chapter in his career. As the inaugural dean of the Mitchell E. Daniels, Jr. School of Business, Bullard will bring his extensive experience and economic expertise to the academic realm. His appointment underscores Purdue's commitment to fostering a strong business education that is informed by real-world economic insights.
As the longest-serving current policymaker at the Fed, Bullard's departure signifies a significant change in the central bank's leadership. His insights and perspectives have been instrumental in shaping the Fed's policy decisions. As he embarks on his new role, the economic community will undoubtedly watch with interest to see the impact of his leadership in the academic sphere.
