The Federal Reserve Bank of Dallas announced Wednesday Lorie Logan will serve as its next president, installing a new face among the central bank’s top brass.
Logan will assume a critical role as high levels of inflation and concerns over the ongoing pandemic weigh on the U.S. economy. Her tenure as president will begin August 22, and she will be of 12 regional heads voting on the direction of the Fed’s economic policies.
She will move to the Dallas Fed from the New York Fed, where she has been leading the central bank’s execution of its large asset purchase program (also referred to as quantitative easing).
The Dallas Fed’s previous president, Robert Kaplan, retired from his role early after revelations he had made large stock trades during 2020 — while simultaneously voting on key economic policies that saved financial markets.
Kaplan took several $1 million dollar-plus stakes in companies like Apple, Delta Air Lines, and Occidental Petroleum, in addition to exchange-traded funds such as iShares Floating Rate Bond ETF. The Wall Street Journal originally reported the news.
The news rippled across the Fed, calling into question conflicts of interests among the nation’s top economic policymakers. Kaplan’s colleague in Boston, Eric Rosengren, similarly stepped aside early amid reports he had made large trades in real estate investment trusts (REITs) during 2020.
Rosengren and Kaplan stepped down at the end of September and beginning of October. In February, Boston appointed Ph.D economist Susan Collins as its replacement. She begins her tenure on July 1.
Logan has been a key figure to the Fed’s operations through the last two economic crises, working closely with not only the system’s reserve banks but with the Fed’s board of governors in Washington over its asset purchase program.
Following both the 2008 financial crisis and the COVID pandemic, the Fed purchased trillions of dollars in U.S. Treasuries and agency mortgage-backed securities — purchases that were executed primarily by Logan’s team in New York.
In a statement, Fed Chair Jerome Powell said Logan is a “trusted colleague” who “helped implement monetary policy to support the U.S. economy.”
The bank’s former first Vice President, Meredith Black, has served as interim president and will continue to do so until Logan takes the top job. The Dallas Fed says Black will retire from the bank on September 1.
Although the Fed governors are Senate-confirmed roles, reserve bank presidents are not. The search process is carried out by the respective reserve bank’s committee independent of Washington, although the Board of Governors must approve any pick.
Brian Cheung is a reporter covering the Fed, economics, and banking for Yahoo Finance. You can follow him on Twitter @bcheungz.