CLEVELAND — This fall, the Federal Reserve Bank of Cleveland marked the 100th anniversary of its opening at E. 6th and Superior, but in its second century, it will soon have a new leader at the helm. Loretta Mester, president since 2014, will be retiring next June.
A committee comprised of eligible members of the Cleveland Fed’s board of directors (Class B and C directors who are not affiliated with institutions regulated by the Federal Reserve) has been formed to conduct the search, consistent with Federal Reserve policies and the Federal Reserve Act. The committee will be chaired by Heidi Gartland, chief government and community relations officer, University Hospitals, and deputy chair of the board of directors of the Federal Reserve Bank of Cleveland.
“President Mester’s strong leadership over the past decade has positioned the Cleveland Fed as an important resource to the community and the nation," Gartland said in a statement. "Thanks in no small part to her intellect, energy, and dedication to public service, the Cleveland Fed today is known around the globe for its top-quality economic research, financial institution supervision, community development outreach, and delivery of financial services.
“We are committed to finding a new leader who can ensure the Bank continues to meet the high standard that President Mester has set.”
Cleveland is home to one of only a dozen Federal Reserve Banks created by an act of Congress in 1913. We are the link between the East Coast and Chicago, covering all or part of four states. Mester told News 5 in June how the local Fed presidents play key roles in shaping the nation's economy through the eyes of the regions they represent.
"Our dual mandate in terms of monetary policy is maximum employment and price stability and you can't be a strong economy unless you have everyone at the table," Mester said.
That Cleveland has that seat at the table is critical, said Senator J.D. Vance, who sits on the Senate Banking Committee. We bring to the national conversation a view away from the coasts.
"So we've got to get the right person there and we got to maintain that presence," said Vance. "It's good for economic policy but it's also good to give some of our most important policymakers a real insight into what's going on in the real economy in the heartland."
On Monday, the committee held a virtual town hall on the process this week. But Senator Sherrod Brown told News 5, "they have not been forthcoming with the public enough to do this right."
Brown said they need to be more open. As chair of the Senate Banking, Housing and Urban Affairs Committee, he penned a letter along with Sen. John Fetterman of Pennsylvania, urging the committee for greater clarity to ensure the right selection is made and to consider a diverse pool of candidates.
"One of my missions is to make sure there is transparency at the Fed and that they represent the public, not just some of America's largest Wall Street banks," Brown said.
A spokesperson for the Fed, for its part, told News 5 they received the senators' letter, and, "The presidential search committee appreciates their questions and looks forward to responding promptly."
There is no set time frame for a replacement to be named.
