Federal Reserve Bank of St. Louis President and CEO James Bullard has resigned to become the first dean of Purdue University’s Mitchell E. Daniels, Jr., School of Business.
Though Bullard’s resignation was effective immediately, he will be available to the bank’s leadership in an advisory capacity until Aug. 14. Bullard has recused himself from his monetary policy role on the Federal Open Market Committee and other related responsibilities and has stopped public speaking.
The St. Louis Fed board of directors confirmed Kathleen O’Neill Paese as interim president and CEO while a national search ensues for Bullard’s replacement. O’Neill Paese most recently served as St. Louis Fed first vice president and chief operating officer.
“I am honored and excited to step into the role,” O’Neill Paese said. “I look forward to doing the important work of supporting monetary policy and economic development in the Eighth District.”
St. Louis Fed Board Chair Jim McKelvey and Bank Deputy Chair Carolyn Chism Hardy will lead a search committee of six directors who are unaffiliated with regulated banks and financial institutions. The committee expects to retain a national executive search firm.
Bullard joined the St. Louis Fed in 1990 as an economist in the research division. Bullard, who was named president and CEO on April 1, 2008, has called for the timing of monetary policy decisions to be driven by economic data rather than by a set schedule. During the Great Recession, Bullard called for an explicit inflation target, which the FOMC later adopted at 2 percent.
“The Bank is well-positioned for ongoing success and impact,” Bullard said. “I am also grateful to have worked alongside such dedicated and inspiring colleagues across the Federal Reserve System and for the opportunity to have worked for the many outstanding directors who have served on the St. Louis Fed board. It’s been an honor to serve this great institution.”