A Goldman Sachs executive and financial industry veteran will take over as the new president of the Cleveland Federal Reserve.
The Central Banking District announced Wednesday that Beth M. Hammack, 52, will become the next chief of the Central Banking District when Loretta Mester retires June 30. Hammack will officially take office on August 21. In the meantime, Cleveland Federal Reserve Bank First Vice President President Mark S. Meder will serve as acting president.
“I am honored to serve the Fourth District and the country in furthering our mission to create a strong and stable economy in which all Americans have the opportunity to prosper,” Hammack said in a statement. “I look forward to leading the Bank’s talented team as it delivers on our important mission every day.”
As the Fed considers its next steps on monetary policy, President Cleveland is playing an important role this year as a voter on the Federal Open Market Committee, which sets rates.
Mester is mostly known for her more hawkish views, meaning she often advocates for tighter economic policies to meet the central bank’s inflation mandate. In a recent speech, she offered her colleagues several recommendations to improve communications, including more detailed post-meeting statements to further explain the committee’s actions.
Hammack comes to the Cleveland Federal Reserve Bank after working at Goldman Sachs in various capacities since 1993 and partnering since 2010, after being named managing director in 2003. She most recently served as Global Chief Financial Officer.
She is a graduate of Stanford University with degrees in quantitative economics and history.
“Beth has a deep understanding of financial markets and the monetary policy transition process, experience leading complex business lines, and a proven commitment to mission-driven work,” said Heidi Gartland, chief government and public affairs officer for University Hospitals and chair of the committee. search for the President and Board of Directors of the Federal Reserve Bank of Cleveland.
Current market prices indicate the likelihood of one interest rate cut later this year, likely in November or December. At the start of 2024, markets were expecting at least six cuts.