Selection process must remain independent, nonpartisan, and merit-based
WASHINGTON—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, joined his fellow Republicans on the Committee in urging the Boston and Dallas Federal Reserve Bank Boards of Directors to keep politics out of the selection process for their respective new presidents.
In letters to the Federal Reserve Banks of Boston and Dallas’ Boards of Directors, the senators wrote:
“It has come to our attention that policymakers in Washington, D.C. are attempting to influence the selection of a new president of the Federal Reserve Bank of [Boston/Dallas] to fill the vacancy created by the recent resignation of President [Eric Rosengren/Robert Kaplan]. As you know, pursuant to federal law, the Regional Federal Reserve Bank presidents are selected by their local boards. As such, it is highly disconcerting to learn that political actors in D.C. are seeking to insert themselves into this selection process, which has long been independent, nonpartisan, and merit-based.”
As the letters point out, several Regional Federal Reserve banks have recently embraced politically-charged social causes outside of the Federal Reserve’s historical mission and statutory mandate. This woke mission creep has weakened the credibility and independence of the Federal Reserve.
“The role and purpose of the Regional Federal Reserve Banks is to limit the concentration of power in D.C. and represent the economic interests of their respective regions, not to engage in partisan politics,” the senators continued. “Accordingly, we hope you and the other members of the board of directors will disregard such political and ideologically-driven pressure and will faithfully carry out your statutory duty to independently select a bank president in a manner that is fair, transparent, and unaffected by political influence.”
The senators concluded by requesting the boards notify the Committee if they receive any outside pressure during the respective selection processes.