Eric S. Rosegren, President and CEO of the Federal Reserve Bank of Boston
Keith Bedford | Reuters
Boston Federal Reserve President Eric Rosegren announced Monday that he is retiring nine months ahead of schedule due to health concerns.
The retirement will take effect on Thursday after planning for June 2022. He has been at the Boston Fed since 155 and has been president since July 200.
In his announcement that the regional Fed leader was facing controversy over private stock trading, the 64-year-old Rosengren revealed that he has been on the list for kidney transplants since June 2020.
A statement from his office said Rosegren’s doctor had told him that a change in his lifestyle could reduce the need for dialysis.
“It is an honor to be employed in the Federal Reserve system, a job where one can continue to work for the economic and financial well-being of the country and New England,” he said in a statement. “I know my colleagues will build our progress, and continue to make a difference for the people we serve.”
In recent weeks the Fed has come under criticism for owning multiple executives and trading private stocks, potentially conflicting with the Fed’s role in financial markets.
Rosegren and Dallas Fed President Robert Kaplan were the most prominent in the controversy, and both later promised to sell all their private stock holdings. The Fed has pledged to tighten its rules around what assets its officials may own.
There was no mention of the issue in the retirement announcement statement. The statement noted that Rosegren “expects her health to improve and will be able to explore areas of professional interest and contribution in the future.”
The Boston Fed has taken the lead in researching a potential central bank’s digital currency that would be similar to other cryptocurrencies such as Bitcoin but would be linked to the dollar and provide another payment opportunity for Americans.
Fed Chairman Jerome Powell praised Rosengren’s work at the Fed, which included managing the Main Street lending program implemented during the Covid-1 pandemic epidemic.
“Eric has repeatedly isolated himself during more than three decades of dedicated public service in the Federal Reserve system,” Powell said in a statement. “In addition to his financial policy insights, Eric has brought a relentless focus on how to ensure the stability of the financial system. My colleagues and I will miss him.”
Kenneth C. A search committee will determine a permanent successor, although Rosengren’s announcement of retirement states that preparations are already underway for a change of leadership, which is why he faces forced retirement the following year.