Former Goldman Sachs executive Beth Hammack appointed as the new president of the Cleveland Federal Reserve

The Federal Reserve Bank of Cleveland has announced the appointment of former Goldman Sachs executive Beth Hammack as its next president, marking a significant shift in leadership for the powerful central bank committee that determines interest rates.

At 52 years old, Hammack will succeed current president Loretta Mester, who is set to retire on June 30 in accordance with the Fed’s mandatory age and length-of-service policies. Mester, 65, has been at the helm since June 2014.

Hammack’s appointment comes at a crucial juncture for the Fed as it grapples with the decision of whether to cut rates from a 23-year high. Many Fed officials have signaled their intention to keep rates elevated for longer than expected following strong inflation reports in the first quarter of the year.

Hammack, who will officially assume her new role on August 21, will become a voting member of the Federal Open Market Committee, the body responsible for setting monetary policy.

In the interim period before Hammack takes office, Cleveland Fed first vice president Mark Meder will serve as the interim president.

Having spent over 30 years at Goldman Sachs, Hammack brings a wealth of experience to her new position, having held various leadership roles within the firm, including co-head of global financing and global treasurer.

In a statement, Hammack expressed her gratitude for the opportunity to serve as the next president of the Federal Reserve Bank of Cleveland, emphasizing her commitment to fostering a strong and stable economy for all Americans to prosper.

Mester, who will cast her final vote at the Fed’s June policy meeting, has been vocal about the need for caution in lowering rates, citing the need for further evidence of falling inflation before making any adjustments.

Overall, Hammack’s appointment signals a new chapter for the Cleveland Fed, with her extensive background in finance and policy-making poised to shape the future direction of monetary policy in the region.