May 29, 2024 - Economy

Former Goldman Sachs executive to lead Cleveland Fed

Incoming Cleveland Fed president Beth Hammack

Incoming Cleveland Fed president Beth M. Hammack. Credit: Federal Reserve Bank of Cleveland

The Federal Reserve Bank of Cleveland's next president will be Beth M. Hammack, a former longtime executive at Goldman Sachs, the bank said Wednesday.

Driving the news: Hammack replaces Loretta Mester, who faces mandatory retirement at the end of June, at the helm of one of the 12 reserve banks around the U.S. that help set and implement monetary policy.

  • Hammack, 52, was most recently co-head of global financing at Goldman and a member of the management committee. She joined the firm in 1993 as an analyst and has also served as global treasurer and head of short-term macro trading, among other roles.
  • She was viewed as a potential future chief financial officer of Goldman before her departure earlier this year, one of several high-profile defections.
  • Hammack has also chaired the Treasury Borrowing Advisory Committee and participated in other groups through which the government consults the private sector about its debt issuance and financial market developments.

She starts Aug. 21, and will have a vote on monetary policy for the remainder of this year and, under the Fed's rotation system, again in 2026.

What they're saying: "Beth always approached the business with a deep intellect," former Goldman CFO Stephen Scherr told Bloomberg in an article about her departure from the firm earlier this year.

  • "She was among a small number of people who worked both as a trader and a banker. There is no doubt that her success at the firm was a product of that versatility."
  • "Beth has a deep understanding of financial markets and the monetary policy transmission process, expertise in leading complex business lines, and a proven commitment to mission-focused work," Heidi Gartland, president of the Cleveland Fed's search committee, said in announcing the appointment.

State of play: The appointment completes an unusual two-year period in which six of the 12 reserve bank presidencies will have turned over (Boston, Dallas, Chicago, Kansas City, St. Louis, and now Cleveland).

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