Powell says December rate cut is not certain
Federal Reserve Chairman Jerome Powell said on Wednesday (October 29) that a December rate cut was “not a foregone conclusion” after the central bank cut interest rates by a quarter of a percentage point.
Atlanta Federal Reserve Bank President Rafael Bostic announced on November 12 that he will step down from his position at the end of his term on February 28, 2026.
His decision comes amid several possible leadership shakeups at the country’s central bank, with Lisa Cook facing a lawsuit challenging her eligibility to serve on the Federal Reserve Board and President Donald Trump expected to appoint a new chairman when Jerome Powell’s term ends next spring.
Bostic is the latest senior Fed official to announce his resignation as the Trump administration continues to pressure the central bank to lower interest rates.
Concerns about the Fed’s independence intensified earlier this year after Gov. Adriana Coogler resigned and President Trump appointed Stephen Millan to replace her on an interim basis, taking a leave of absence from the president’s Council of Economic Advisers to replace her.
But Mr. Trump has no chance to choose Mr. Bostic’s successor. The Atlanta Fed announced it will form a committee to find its next president. If no one is appointed by February 28, 2026, Cheryl Venable, the bank’s first vice president and chief operating officer, will serve as interim president until a permanent replacement is found.
All 12 regional Fed presidents whose five-year terms expire in February are up for reappointment. Mr. Bostic’s retirement plan is somewhat unexpected, as at 59 years old he is more than five years away from the normal retirement age for regional bank presidents at the Fed.
He has been president of the Atlanta Fed since 2017, when he became the first black and openly gay regional Fed leader in the agency’s 111-year history.
In Atlanta, Mr. Bostic oversees all activities of the bank, including monetary policy. He also serves on the Federal Open Market Committee, whose votes help set the Fed’s influential benchmark interest rate.
“It has been my tremendous honor and privilege to lead the Atlanta Fed for the past eight and a half years,” Bostic said in a statement announcing his plans to retire. “I’m proud of what we accomplished during my term in making the noble goal of an economy that works for everyone more realistic, and I look forward to discovering new ways to advance that bold vision in the next chapter.”
Chairman Powell said in comments included in a statement released by the Atlanta Fed that it was an honor to serve with Bostic.
“His perspective has deepened the Federal Open Market Committee’s understanding of our nation’s dynamic economy,” Powell said. “And his steady voice embodies the best of public service: analytically based, empirically based, and purpose-driven. His leadership has strengthened our organization and advanced the Federal Reserve’s mission.”
Gregory Heil, chairman of the Atlanta Fed’s board of directors, also praised Bostic, saying he represents “the economic experience of all Americans in shaping monetary policy.”
Contact Rachel Barber rbarber@usatoday.com X Follow her at @rachelbarber_
