Bullard, a Key Voice in Inflation Fight, Steps Down as Head of St. Louis Fed

The Federal Reserve is losing one of its most influential officials.

St. Louis Federal Reserve President James Bullard announced on Thursday that he was stepping down from his post to take the position of dean at Purdue University’s Mitchell E. Daniels, Jr. School of Business.

“It has been both a privilege and an honor to be part of the St. Louis Fed for the last 33 years, including serving as its president for the last 15 years,” Bullard, 62, said in a statement. “I am also grateful to have worked alongside such dedicated and inspiring colleagues across the Federal Reserve System.”

The St. Louis Fed’s first vice president and chief operating officer, Kathleen O’Neill Paese, assumed the duties of interim president and CEO, effective immediately.

The bank said it would hire a “national executive search firm” to find a permanent replacement for Bullard.

“We have our work cut out for us,” said Jim McKelvey, chair of the St. Louis Fed’s board of directors. “Bullard combines economic scholarship with management savvy. His ability to clearly communicate economic policy is a rare gift. Replacing such a special talent will require a special process, so we will be conducting an open, public search for our next great leader.”

Bullard was considered one of the most influential officials at the Federal Reserve. In recent years, he gained a reputation as an “inflation hawk,” calling on the central bank to aggressively combat quickly rising prices and pushing back when Wall Street expected the Fed to take a more relaxed approach. He was critical of those who insisted inflation would be transitory and was among the first Fed officials to call for the super-sized hikes the Fed implemented last year.

Prior to the most recent inflation episode, however, Bullard was often considered a “dove” who favored monetary stimulus during years when unemployment was high and inflation was consistently below the Fed’s target.

Bullard was not a voting member on the Federal Open Market Committee this year. Fed Governor Chris Waller was for many years the head of research under Bullard. With Bullard’s departure, he is now regarded as the leading hawk on the committee.