Economist Austan Goolsbee named next Chicago Fed president
Source: CNBC
Economist Austan Goolsbee will take over as president of the Chicago Federal Reserve early next year as the central bank weighs critical policy moves ahead, according to an announcement Thursday. Goolsbee will take the seat officially on Jan. 9, 2023 and finish a term begun by the retiring Charles Evans that expires Feb. 28, 2026. Currently a professor at the prestigious University of Chicagos Booth School of Business, Goolsbee previously served as chairman of the White Houses Council of Economic Advisors from 2010-11 under then-President Barack Obama.
Austan is an exceptional choice to be the next president of the Federal Reserve Bank of Chicago. He is a highly accomplished economist with extensive policy experience and a strong commitment to public service, Helene Gayle, chair of the Chicago Feds board of directors, said in a statement. Goolsbee comes to the Chicago Fed at a sensitive time for the central bank. As part of an effort to fight the highest levels of inflation in more than 40 years, the Fed has raised its benchmark interest rate half a dozen times this year and is expected to continue the increases at least into the early part of 2023.
Some economists worry the Fed is over-tightening and could cause a recession. In recent remarks to CNBC, Goolsbee indicated that the slowdown indicated in some inflation data points lately likely wont be enough to get the Fed to back off much from its policy tightening. If youre raising 75 basis points a meeting, were going to have to figure out what the timing is of the pivot, he said following Octobers consumer price index report showing that inflation rose less than expected on a monthly basis.
Unless and until you get that core monthly inflation down in a comfortable range, I think the voices that are saying slow down, cool off are still going to be a little muted. Goolsbee will not be a voting member of the rate-setting Federal Open Market Committee in 2023. However, he will still get to voice his opinion on policy and will next be a voter in 2025.
Read more: https://www.cnbc.com/2022/12/01/economist-austan-goolsbee-named-next-chicago-fed-president.html
Reference:
Chicago Fed President Evans to Retire
CHICAGO (April 21, 2022) The Federal Reserve Bank of Chicago today announced that Charles L. Evans, president and chief executive officer, will retire from his position in early 2023. Dr. Evans joined the Chicago Fed in 1991 and has served in his current role since September 1, 2007. He previously served as director of research and senior vice president, supervising the Banks research on monetary policy, banking, financial markets and regional economic conditions as well as its community development and public affairs functions.
It has been an honor to serve as a president of the Chicago Fed and as a member of the Federal Open Market Committee for the last 14 years, Evans said. I have been privileged to work with talented, dedicated and mission-driven colleagues who are singularly focused on serving the public interest, the Seventh District and our nation. I am immensely proud of the work our bank has accomplished."
(snip)
https://www.chicagofed.org/publications/news/2022/chicago-fed-evans-to-retire
Article updated.
Original article -
Goolsbee will take over officially on Jan. 9, 2023 and fill a term that expires Feb. 28, 2026.
This is breaking news. Please check back for updates.
rurallib
(62,342 posts)mahina
(17,502 posts)Ive listened to his talks and read some of his work. I trust him as much as I can trust
msfiddlestix
(7,264 posts)in terms of functionality, how it governs our economic system.
As I read the first line, it appears that Chicalgo has its own Federal Reserve. Do all major cities have their own Federal Reseve?
I never hear a reference to the Federal Reserve of Los Angeles, or San Francisco. Does the Chicago Federal Reserve connect to THE Federal reserve? Is the Federal Reserve governed from Chicago?
BumRushDaShow
(127,260 posts)including here in Philly (I used to work near that and had actually been in there to cash in some old EE bonds years ago - I think they ditched the teller windows now) -
The "central banking (Federal Reserve) system" itself is made up of a Board of 7 Governors who decide policy (which is what Powell heads up). But the actual banks have Presidents/CEOs for the day to day management and operation of the banking/transactions that go on in them.
(ETA - note that your paper currency is "officially" issued by a Federal Reserve Bank and there is a whole coding system in place with the serial numbers, etc., on each bill to denote where it came from - https://www.uscurrency.gov/denominations/bank-note-identifiers)
msfiddlestix
(7,264 posts)I feel like years ago, I read that Hamilton had proposed and formulated the Central Banking system before our Constitution was even ratified. But I'm likely misremembering history.
When I think of how our Capitalist system was designed and essentially governed and how our economy functions, was created centuries ago with the first global corporations East Indies Company and the Dutch East Indies Co, which pretty much bankrolled the colonies capitol centers start up.
The corruption was pretty much established and instituionalized then, most important key in my mind is we the actual human people, has always been and will always be subject to the whims of corporate power and their agendas.
For wonder we have the likes of the Railway Companies with the help of corrupt Judge in Santa Clara California back in the 1880's determining by opinion only and not actual law, that Corporations were People and enjoy the rights stated in the 14th amendment, which the U.S Supreme Court affirms over and over again.
My apologies, I completely diverged from the OP. oops, forgive me... and thank you!
BumRushDaShow
(127,260 posts)of what was Hamilton's "First Bank" building -
(snip)
Constitutional Debates
Among the plans most vocal opponents was Secretary of State Thomas Jefferson. Jefferson advocated for a strict interpretation of the U.S. Constitution, which didnt explicitly state that the federal government could create a national bank. On the other hand, Hamilton argued, the Constitution also didnt prohibit the formation of such a bank. Even after both the House and the Senate approved the bill, Jefferson urged President Washington to veto it. Instead, Washington gave Hamilton a week to address Jeffersons arguments. Hamilton delivered a 15,000-word rebuttal that swayed Washington.
Bank Business
Congress gave the Bank of the United States, now commonly known as the First Bank, a 20-year charter that started in December 1791. The bank did not dictate fiscal policy, but it still wielded great influence over the countrys finances due to its size. The banknotes issued by the First Bank gave the U.S. the closest thing to a national currency at a time when each state bank could print its own banknotes. First Bank notes were also the only ones accepted when paying federal taxes, which the First Bank was in charge of collecting. It also worked to pay the governments bills, including much of the debt left over from the Revolutionary War. Congress opted not to renew the bank's charter when it expired in 1811. Five years later, after the War of 1812, President James Madison signed a bill establishing the Second Bank of the United States.
The Building
When the bank first opened in 1791, it was initially housed in Carpenters Hall on Chestnut Street, but it moved into a magnificent new home on South Third Street six years later. Designed by architect Samuel Blodgett, Jr., the new bank headquarters consisted of a three-story brick building with a blue marble façade.
https://www.nps.gov/inde/learn/historyculture/places-firstbank.htm
And then later when the original charter expired, they reluctantly re-upped a new "central bank" as the "Second Bank" here about 2 blocks from the First Bank's building (the building now being used as a historic portrait gallery) -
(snip)
The Bank Wars
Chartered by Congress in 1816, the Second Bank played a pivotal role in the "bank wars," which pitted President Andrew Jackson against powerful bank president Nicholas Biddle. President Jackson contended that the Second Bank was unconstitutional and dangerous to republican ideals. In 1832, Jackson's political opponents decided to make the Bank an election issue by forcing an early renewal of the Bank's 20 year charter, but the plan backfired when President Jackson vetoed the bill. By 1836, all of the Second Bank's funds had been transferred to state banks.
https://www.nps.gov/inde/learn/historyculture/places-secondbank.htm
Various cities had "branches" of these during the period of both bank charters.
msfiddlestix
(7,264 posts)In fact, I can't honestly say I was ever aware of this. I did know that Hamilton's proposal was hotly disputed, I thought it was Jefferson, and the article just confirmed it. I didn't know Hamilton's rebuttal was 15,000 words long! Which obviously impressed Washington.
I do keep forgetting, (don't know why) Philadelphia was the first Capitol from which the young country was governed.
Gorgeous photos, what a blessing for you to have had the opportunity to live and work so close to the center of our democracy's origins. I do not remember Jefferson's objections to the concept. I feel like when I read them long ago, I agreed with his view.
But I cannot at this moment recall what they were. My memory stick is maxed out. LOL.
BumRushDaShow
(127,260 posts)Sadly many people do "forget" and prefer to relegate this city to nothing more than "cheese steaks", "Rocky", and "people throwing snowballs at Santa" 54 years ago.
The neighborhood dubbed "Olde City" that goes from the Delaware River west to about 7th Street, and from the south at about Locust St. to the north at Vine St., is probably the most historic when it comes to this nation's founding, of any place in the country.
https://robe-trotting.com/philadelphia-historical-sites/
The site of the first "White House" (President's Mansion) has an educational display structure on the actual site of where the house stood -
Because slavery was abolished in PA, George Washington would pack up his 9 slaves once a year and take them down to VA so they wouldn't be automatically freed.
I did see the musical "Hamilton" here (and there were articles about the cast actually touring around the city where things happened before and after the Revolution and the drafting of the Declaration and later Constitution), but I was a bit miffed about the NY focus but I guess that was to be expected. He did in fact live and work here and even had his infamous "affair" here.
However because of issues here, they eventually fled to NY. And yes, Jefferson and Hamilton had it out with respect to the banking as illustrated in the musical ( ) -
Some tidbits of places here associated with where he lived/worked - https://www.visitphilly.com/articles/philadelphia/guide-alexander-hamiltons-philadelphia/#alexander-hamilton-walking-tours
msfiddlestix
(7,264 posts)Travel isn't as easy as use to be.. but I surely would like to see these places.
These photo images and stories are inspiring.. thank you!