Cleveland Fed President Loretta Mester to retire in June 2024

The Cleveland Federal Reserve launched a search Wednesday for its new leader, after current President Loretta Mester retires in mid-2024.

Often one of the central bank’s bigger proponents for tighter monetary policy, Mester, 65, will reach mandatory retirement as she will have served in her current position for 10 years come June of next year.

A committee comprised of Cleveland Fed board members will conduct the search. The vacancy comes at a time when the Fed has pushed for greater diversity among its governing body.

Heidi Gartland, deputy chair of the district’s board, will lead the effort to replace Mester.

“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. “We are committed to finding a new leader who can ensure the Bank continues to meet the high standard that President Mester has set.”

Whomever leads the Cleveland Fed will get a vote in 2024 on the central bank’s rate-setting Federal Open Market Committee.

In her most recent speech, Mester said she thinks the Fed may need another interest rate hike before the end of the year as it seeks to get the inflation rate back to 2%.

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