Federal Reserve hawk Bostic announces retirement

PANews reported on November 13th that, at a sensitive time when Trump is intensifying his attacks on the Federal Reserve and the internal re-election vote is imminent, Raphael Bostic, a key hawk at the Fed, has chosen to step down. This move is seen as a compromise to avoid direct confrontation under political pressure, marking a double blow to the Fed's independence and hawkish voices within the organization.

Atlanta Federal Reserve President Raphael Bosticella announced Wednesday that he will retire when his current five-year term expires at the end of February next year, avoiding potential internal controversy surrounding his re-election. Bosticella's timing for retirement is delicate—the seven-member Federal Reserve Board of Governors in Washington must agree that the presidents of all 12 regional Federal Reserve banks will begin new five-year terms on March 1st next year. Fed insiders believe that the financial restatement issue has jeopardized Bosticella's re-election prospects, especially against the backdrop of continued questioning of the Fed's credibility by Trump and his allies. This year, the Fed has already faced unprecedented political pressure from the Trump administration for not cutting interest rates more aggressively. Bosticella's departure will weaken hawkish voices within the Fed during this politically sensitive period.