'Fed Hawk' Bullard Resigns as President, Moves to University

James Bullard, president of the Federal Reserve Bank of St. Louis and a prominent hawkish (favoring monetary tightening) figure within the U.S. Federal Reserve (Fed), is stepping down after 15 years in office.

[Image source=Reuters Yonhap News]

The St. Louis Fed announced on the 13th (local time) that President Bullard will leave the bank on August 14 and join Purdue University. The 62-year-old Bullard is set to become the inaugural dean of the Mitchell E. Daniels Jr. School of Business at Purdue University starting August 15.

Accordingly, President Bullard has stepped down from the Federal Open Market Committee (FOMC) and other monetary policy-related duties and has ceased public speeches. He will remain at the St. Louis Fed in an advisory capacity until next month.

In a statement, Bullard said, "It has been a privilege and an honor to be part of the St. Louis Fed for 33 years, including 15 years as president," adding, "I am grateful to have worked with dedicated and inspiring colleagues across the Fed." Purdue University also confirmed, "President Bullard, a distinguished economist and scholar, is one of the longest-serving Fed presidents in the United States," and noted, "He will now lead the Mitchell E. Daniels Jr. School of Business."

Once classified as a dove, Bullard has been regarded as a leading hawk within the Fed since 2021, following the pandemic. He has strongly advocated for the Fed to sharply raise interest rates to curb inflation, which has surged to multi-decade highs. He was also one of the figures demanding aggressive tightening measures last year, including the giant step (a 0.75 percentage point increase in the benchmark interest rate). Despite not having voting rights on the FOMC this year, the market has closely watched his remarks.

Notably, Bullard's resignation comes about two weeks before the July FOMC meeting, where a baby step (a 0.25 percentage point increase in the benchmark interest rate) is considered likely, drawing attention. According to the Chicago Mercantile Exchange (CME) FedWatch, the federal funds (FF) futures market currently reflects about a 93% probability of a baby step in July.

Derek Tang, an economist at LH Meyer Monetary Policy Analytics, told Bloomberg, "Bullard was once a dove but has recently become a hawk to ease inflation," adding, "His resignation will weaken the hawkish influence and give more weight to his dovish colleagues."

The St. Louis Fed will promptly seek Bullard's successor. Until a new president is appointed, Kathleen O’Neill Pease, the second-in-command at the St. Louis Fed, will serve as interim president.

This content was produced with the assistance of AI translation services.