Boston Federal Reserve President Eric Rosengren announced Monday he is stepping down from his position on Thursday retiring nine months earlier than he had planned, citing health concerns.
In his announcement, which came weeks after an uproar over his trading in individual stocks in 2020, Rosengren revealed that he has been on a kidney transplant list since June 2020.
Rosengren (64), has been with the Boston Fed since 1985, and served as its president from July 2007. Rosengren had originally planned to retire in June.
His office released a statement saying that Rosengren had been told by his doctor to make lifestyle adjustments in order to reduce his dialysis need.
In a statement, he stated that “it has been an honour to serve as the Federal Reserve System,” and added that he was dedicated to pursuing New England’s economic and financial health. I know my fellow colleagues will continue to build upon our achievements and make a positive impact on the lives of those we serve.
The Fed has come under criticism in recent weeks following revelations that several of its officials had owned and been trading individual stocks, a potential conflict with the Fed’s role in the financial markets.
Rosengren, Dallas Fed President Robert Kaplan and others were the most visible in the scandal. They both later pledged to dispose of all individual stock. Fed pledged tighter rules regarding the assets that its officers can possess.
In the announcement of Rosengren’s retirement, the topic was not mentioned. Rosengren said that he was trying to improve his health so that he can continue to pursue areas of professional and personal interest.
Boston Fed led the investigation into a possible central bank digital currency. It would be similar to bitcoin, but linked to the US dollar. This could provide Americans with another payment option.
Jerome Powell, Fed Chairman, expressed his appreciation for Rosengren’s contributions to the Fed. He also managed the Main Street Lending Program that was implemented in the aftermath of the Covid pandemic.
Powell released a statement saying that Eric had distinguished himself over the past three decades in his dedicated service as a Federal Reserve System official. Eric’s monetary policy insight was only part of his legacy. He also remained focused on how to best ensure stability in the financial sector. His presence will be missed by his colleagues as well as me.
Boston Fed interim President and CEO will be Kenneth C. Montgomery. Although the Boston Fed will appoint a search committee to find the permanent successor, Rosengren announced that arrangements had been made for the change of leadership due to his mandatory retirement in the next year.