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Atlanta Fed CEO Lockhart to step down in February


Dennis Lockhart, president of the Federal Reserve Bank of Atlanta and a centrist voice on an often-divided Fed policymaking committee, said Tuesday he will step down in late February after nearly 10 years of service.

Lockhart, 69, is not a voting member of the Fed’s Federal Open Market Committee this year, but participates in the panel’s meetings and so has some say in its decision-making. On Monday, he called for a “serious discussion” about whether to raise interest roles at a September 20-21 meeting, partly balancing Fed board member Lael Brainard’s call for more caution. Lockhart was scheduled to be an alternate voting member next year and a full member in 2018.

“His overall view tends to follow the general direction of the FOMC,” says Tim Duy, a University of Oregon economics professor and author of the Fedwatch blog. As a result of that and his non-voting status, Duy said he didn’t expect Lockhart’s departure to have a significant near-term impact on Fed policy.

Citing a sluggish US and global economy and low inflation, the Fed has held its key interest rate steady since raising it in December for the first time in nine years. But some policymakers believe rates should be lifted sooner than later because of the risks posed by eventual higher inflation and asset bubbles.

In a statement, Lockhart, who plans to leave office Feb. 28, said, "It has been an enormous privilege to serve as president of the Federal Reserve Bank of Atlanta."

The Atlanta Fed's board will conduct "a nationwide search" for a new CEO among "a diverse slate of candidates," it said. The search committee will be led by Thomas Fanning, chairman and CEO of Southern Company and chair of the Atlanta Fed's board of directors.

The Atlanta Fed doesn't have a deadline to name a new president. If a successor is not named by Lockhart's departure date, Marie Gooding, the bank's first vice president and COO, will assume the duties of president on an interim basis.

"Dennis has provided outstanding leadership to the Sixth Federal Reserve District and its communities as well as to the Federal Reserve System as a whole," Fanning said. "Since becoming president in early 2007, Dennis has promoted better understanding of monetary policy's role in the economy through extensive interaction with business and community leaders, who in turn have provided him with valuable information on what is happening in the economy and the financial system."

The Atlanta Fed serves the Sixth Federal Reserve District, which includes Alabama, Florida and Georgia and portions of Louisiana, Mississippi and Tennessee. As one of 12 banks of the central banking system, the Atlanta Fed participates in setting national monetary policy and provides payment services to financial institutions and the U.S. government.

The Atlanta Fed will host a live webcast on Oct. 6 at 2:00 p.m. ET to explain the search process.