How long did the Search Committee take to select a president?
The search process took about four months, although planning for the search had begun earlier, in anticipation of former president Rosengren's mandatory retirement date of June 2022.
The Federal Reserve Bank of Boston launched the search on Oct. 12, 2021. The Search Committee reached out to various stakeholder groups and constituencies to collect input, information, and ideas, and welcomed feedback via a dedicated email inbox and other means. The Committee published a report on December 1, 2021 detailing the input and its impact.
The Search Committee considered many highly qualified and diverse candidates from a nationwide pool. Ultimately, the Committee selected Dr. Susan Collins and her selection was approved by the Federal Reserve Board of Governors.
How did the Search Committee decide?
Working with executive search consultancy Spencer Stuart, the committee conducted a broad and inclusive search, requesting input from the public and stakeholders. The Committee published a report on December 1, 2021 detailing the input and its impact. Upon gathering a large, diverse, qualified pool of applicants, the Committee began a series of rounds of interviews to narrow the pool, eventually to finalists and then the candidate best suited for the role.
The announcement describes the characteristics that the Search Committee believes make Dr. Collins ideal for the role – and quotes Search Committee Chair Christina Paxson as noting that "Dr. Collins brings the technical expertise and insight to contribute to policymaking, and the leadership ability to head the organization. She is deeply committed to serving the public; engaging with constituents; and advancing economic stability, opportunity, and prosperity for the region and nation through the work of the central bank. Susan has also advanced diversity, equity, and inclusion through her work with the American Economic Association, the Ford School, and the University of Michigan."
What financial restrictions are Bank presidents and CEOs subject to upon their appointment?
Dr. Collins embraces the upcoming, expanded rules as well as all current restrictions. The Federal Reserve's Board of Governors is in the process of framing a broad set of new rules that will prohibit the purchase of individual securities, restrict active trading, and increase the timeliness of reporting and public disclosure by Fed policymakers and senior staff [see the Board's announcement at https://www.federalreserve.gov/newsevents/pressreleases/other20211021b.htm].
How long will it be before the new president assumes the role? When will she participate in Federal Open Market Committee meetings?
Dr. Collins expects to begin in the role July 1, given her current responsibilities at the University of Michigan. She plans to participate in the late-July meeting of the Federal Open Market Committee. Given the established rotation of Reserve Banks, in 2022 she will be a voting member of the Federal Open Market Committee, after officially starting as Boston Fed president. The Philadelphia Reserve Bank President and CEO Patrick Harker is expected to vote as an alternate member of the FOMC until that time. Ken Montgomery will remain the Bank's interim president until Collins begins, and will continue as first vice president and chief operating officer. Montgomery will also continue leading the Federal Reserve System's FedNowSM Service, which will support instant payments for businesses and individuals.
How long will she serve in this role? Will she need to be reappointed?
Collins will fulfill the remainder of the current five-year term that commenced on March 1, 2021, and ends on February 28, 2026 – a juncture at which she, like all Reserve Bank presidents, will be considered for reappointment via a rigorous and comprehensive process overseen by the Board of Governors.
Reserve Bank presidents are subject to mandatory retirement considerations. Presidents initially appointed after age 55 are eligible to serve up to 10 years in office.